Jenny Johnston's Blog
If you’re buying a fixer upper, whether you plan to live on the property or flip it, there are plenty of things that you’ll need to consider. So you can budget appropriately, below, many of the costs and fees are laid to so that you can see what you’ll need to budget for when rehabilitating a home.
The Overall Costs
The costs that you’ll incur in buying and finishing a home that needs to be rehabilitated are as follows:
- The team needed for rehabilitation
- The purchase price of the property
- The cost of owning the property
- The cost of selling the property (if you plan on flipping the home)
The people that you put together to rehab your home will be very important to the entire rehabilitation process. You should take the time to research each person that you’re hiring to be sure that they are a good fit for the job.
Professionals who will be involved in the process include:
- Insurance agent
- Home inspector
You can ask your realtor or other trusted contacts for recommendations. Putting a team in place helps to make the entire, sometimes cumbersome process of house rehabilitation a bit smoother.
Buying The Property
These costs are pretty standard as if you were buying any other home. You’ll need to pay closing costs, attorneys fees, realtor fees, and more. Costs typically included in a home purchase are:
- Purchase price
- Closing costs
You should budget for all of these typical home buying costs when buying a rehab home.
The Costs Of Home Rehabilitation
This is where things get expensive. You’ll need to first pay a contractor just to consult with them to see how they will create your vision for the property. You could also take another route an consult with a home inspector who has experience in construction. They can give you an idea of what the construction expense will be and what needs to be addressed.
When you do get to meet with contractors, you’ll want to understand their construction experience and feel comfortable that they can produce the work that you need at a high level of quality.
Owning A Home
Once you have the home in need of rehabilitation in your possession, you’ll need to pay the typical costs of any homeowner. These include:
- Mortgage payments
Even if you’re not currently occupying the home, once the property is purchased, all of these costs will need to be covered and considered.
If you decide to flip the property and sell it, you’ll need to consider additional costs including realtor’s fees and other closing costs.
Although it's an old-fashioned concept, its value and importance will never go out of style.
For homeowners, growing families, and senior citizens, having a small group of people you can consistently turn to for support can make problems smaller and challenges a lot easier to glide through. Not only that, but having a solid connection with a few good friends, family members, and neighbors can help keep your spirits up, through both good times and bad.
When it comes to being a homeowner, raising a family, and growing older, here are some specific reasons why staying in touch with your social contacts can make life easier, less expensive, and safer:
- Getting recommendations: Whether you need a new dentist, dog groomer, or plumber, your chances of finding someone who's dependable and reasonably priced are much greater when you ask a friend, relative, or trusted neighbor. When you're just left to you're own devices to sift through Internet listings, online reviews, and advertisements, it can be pretty time consuming and frustrating. All things being equal, you're more likely to have a successful experience with a service provider who's been recommended to you, as opposed to going through the vetting process completely on your own.
- Taking care of your house while your away: When you're on vacation or away from home for a long weekend, it's nice to have someone you can rely on to water your plants, take care of your pets, and check to see if your house is secure. They can also make sure you don't have newspaper deliveries, packages, or mail piling up in front of your house.
- Knowing a neighbor you can trust: Having someone nearby who can help you in an emergency, take care of your kids if you can't get home on time, or keep on eye on your house while you're away is a vital resource.
- Senior citizens need a support network: As we age and become less able to get around like we used to, a helping hand can make a big difference in our lives. The psychological benefits of having a social life at an older age have also been well documented. Social contact enhances the quality of life for senior citizens and can even contribute to longevity.
Selling a house is a major life event. Generate a sizable profit on the sale of your house and you could use the money as a down payment for a new house. You could also use the profits to launch a business, travel or enjoy another life experience that you’ve been putting off due to finances. But, first you have to get the word out, announcing that your house is for sale.
Great places to announce that your house is for sale
Incorporate the internet into your house sale announcements. Also, take advantage of offline announcement opportunities. Below are great ideas and places to spread the word that your house is on the market.
- Put a “House for Sale” sign in your front yard. Go for big, bold fonts and colors like red and white or purple and yellow.
- List your home online. Zillow, Truila and Home Finder are examples of online listing sites. Check out the types of houses listed at the sites before you add your property. By reading through existing home listings, especially for houses that are similar to yours, you can get ideas on how to write a listing that grabs potential buyers’ attention.
- Schedule open houses. Create a monthly schedule of when you’ll hold an open house. Space open houses out to give yourself enough time to clean and prep your home. Be open to partnering with a professional stager.
- Hold a yard sale. Yes, a yard sale. It’s a great way to get rid of items you’re not going to take to your new house. Let everyone who stops by the yard sale know that your house is for sale.
- Take out an ad in your local newspaper. Local magazines are another great place to announce that your house is for sale. Not only will you be telling people that your house is on the market, you’ll be taping into the very people who may be most interested in buying your home.
- Create a website that highlights your house. As a safety tip, clear furniture out of a room, then take pictures and post them on the internet. Highlight the layout, spaciousness sand functionality of your home. Also, provide details on the front and back yard space. This is a time when great landscaping can really pay off. Pictures of your beautiful yards can easily attract house buyers who appreciate the outdoors.
- Market your website at social media sites like Facebook, Pinterest and Google Plus. Target your marketing to people who live in the area where your home is located. Another demographic to target is military members.
- Let your family, friends and colleagues know that you’re house is for sale. If you attend a worship center, tell people who attend the worship center that your house is on the market.
You’ve taken great care of your house. It’s the place where you may have started a family.The steps that you’re taking to begin the house sale process will allow someone else, perhaps an entire family, to become first time homeowners or to move into their dream home. By taking advantage of online and offline house sale announcement options, you could alert larger numbers of house shoppers about your real estate offering.
If you plan to buy or sell a home in the near future, it is important to find the right real estate agent. By doing so, you should have no trouble getting the optimal results from the homebuying or home selling journey.
Ultimately, you'll want to conduct extensive research before you hire a real estate agent to help you buy or sell a home. This will require you to look at a variety of factors, including:
1. Communication Skills
A real estate agent should serve as a friendly, knowledgeable source of housing market insights. This individual should be able to provide you with the information you need to make homebuying or home selling informed decisions. That way, you can seamlessly navigate the homebuying or home selling process.
Hiring a real estate agent who is a great communicator is essential. This housing market professional will allocate the necessary time and resources to listen to your concerns and questions and respond accordingly.
The right real estate agent will stay in touch with you via email, phone and text. This will ensure you can stay up to date as the homebuying or home selling journey moves forward.
Plus, a real estate agent who understands the importance of communication is unafraid to be honest with you. He or she will provide honest, unbiased suggestions as you buy or sell a home and guarantee you can get the support you need at all times.
2. Industry Expertise
How long has an individual served as a real estate agent? Spend some time learning about a real estate agent's expertise, and you may be better equipped than others to determine whether this person can help you accomplish your homebuying or home selling goals.
A quick online search offers a great starting point as you assess a real estate agent's expertise. In fact, this will allow you to learn about a real estate agent from any location, at any time.
If you want to go a step further, set up a face-to-face meeting with a real estate agent. This will enable you to ask questions and gain deep insights into a real estate agent's background.
3. Client Referrals
How would past clients rate their experiences with a particular real estate agent? Thanks to client referrals, you can find out how a real estate agent has supported his or her previous clients.
A real estate agent should be able to provide you with client referrals without delay. Then, you can reach out to these client referrals and gain unparalleled insights into how a real estate works with homebuyers and home sellers.
Client referrals allow you to find out what it's like to work with a real estate agent at each stage of the homebuying or home selling journey. They also can provide you with insights into a real estate agent that you might struggle to obtain elsewhere.
Evaluate the aforementioned factors as you search for the right real estate agent, and you can employ a top-notch housing market professional to help you buy or sell a house.