Should You Invest in a Fixer-Upper? A Dover Home Improvement Contractor Can Help
A home improvement contractor can help you renovate a home.
There are several factors to consider when weighing the merit of investing in a fixer-upper. Naturally, the number of renovations the home will require and how much those projects will cost are major considerations. After all, the true price of the home is its purchase price plus the cost of a home remodel in Dover, not just the bargain price of a home in need of work. You’ll need to run your numbers carefully before making a decision.
Adequate Return on Investment
When considering the purchase of a fixer-upper primarily as a financial investment, you’ll need to carefully assess the balance between the purchase price and the costs involved in renovating the property. Whether you plan to flip the house by remodeling it and selling it for a profit or you are investing in it as a rental property, you’ll need to do the math to see if you will be able to earn a worthwhile return on the money you invest.
It’s a good idea to add 20 to 25 percent to your estimated remodel budget to cover any unexpected repairs that may come up during the renovation process. That’s because, as almost any Dover home improvement contractor can tell you, sometimes when you open up a wall or begin what by all appearances is a small fix, you can discover a larger problem lurking under the surface. You could, for example, expose the wiring in a wall during the process of moving a wall switch to a more convenient location and find evidence other wires need immediate replacement.
If you buy a fixer-upper, you need a home remodel.
Home Investment Is Different
The numbers run a bit differently when you are thinking about buying a fixer-upper and renovating it to live in. If this is going to be your long-term home, gaining a better quality home at a bargain price may be more important to you than what the return on your investment is going to be in hard numbers after five or 10 years. After all, if it is your home, you aren’t looking to sell it within that time-frame anyway. The deciding factor is what the home is worth to you. A fixer-upper can be transformed into a gorgeous custom-designed home when you have an expertsoutheastern MA premier home remodeling and additions contractor handle your renovations.
Ask the Experts
If you don’t have a lot of hands-on home improvement project experience, it can be difficult to accurately assess the condition of a house to determine just how much remodeling and repair it needs. Talk to local expert contractors to learn what types of damage to a home tend to be the most problematic or most likely to run into unexpected costs. Ask about what types of renovations are most cost-effective when it comes to increasing curb appeal or home value. Investing in a house is serious business so take your time to gather facts and work your numbers before making any final decisions. Contact us for more information about renovating houses that may need many repairs.
