Should You Buy a Fixer-Upper in Chatham?
Just because you love do it yourself projects, doesn't mean you're cut out for a fixer upper home. With the opportunities and properties currently available on the Chatham Real Estate market, you can find a steal, and make some money if you're willing and able to invest time and money in renovating the house. Many first class neighbourhoods have smaller, or older homes just looking for some love. When buying and renovating Chatham real estate you must have a realistic idea of just how much work you're getting yourself into.
Pick a Home that will Generate Revenue
When purchasing Chatham real estate and considering a fixer upper home, making a profit should be one factor you consider. Many people will fix up a home knowing they won't get their money back, but the ideal situation is to renovate your home, and end up with a property worth more than what you originally paid. In order to do this, buyers should look for improvements that are mostly cosmetic, such as paint touch-ups, drywall repairs, floor refinishing or new lighting fixtures. These upgrades cost a lot less than what they will return in market values, which makes it an intelligent purchase for buyers looking to purchase Chatham real estate.
What to Avoid
Not all fixer uppers are worth the cost and effort associated with restoring them to a pristine state. As you sift through Chatham Real Estate, be sure to avoid structural renovations, as the cost of these repairs typically will not return dollar for dollar. Also, it is important that buyers who purchase fixer-uppers do not over improve. Make sure your home still fits with the rest of the properties in your neighborhood. As such, you shouldn't raise the value of your home more than 10 to 15 percent above the selling prices of comparable properties in the neighbourhood. As always, the final thing to consider is location. You can change the flooring, you can change the paint, you can even change the floor plan, but you will never be able to change the location.
How to Budget
Before you buy, budget. Particularly if you're planning to renovate, budgeting is essential. When purchasing real estate in Chatham, buyers must be aware of how much money they have to spend, as well as whether or not they will profit from renovating a certain home. Bring in a contractor, source out your supplies, and put tangible numbers to your reno. As well, be sure you have a home inspection and property assessment completed before purchase. Included in this assessment should be a breakdown of the required materials, labour, and other various expenses. When buying Chatham real estate, calculate what the market value of the home will be after the renovation by comparing it to other real estate properties in the neighbourhood that are similar. Also, buyers who are looking to purchase Chatham real estate should then deduct another 5 to 10 percent for any extra costs or unforeseen problems that may occur. Once buyers have gone through this process, they will have formulated a realistic profit margin and expense worksheet.
So, when buying a fixer-upper in Chatham, remember the following three tips:
- Take into consideration which home will get you more money than you initially paid for it following your renovations.
- Avoid structural renovations.
- Budget your money properly by conducting a thorough assessment, and also ensure that an inspection is conducted.
If buyers follow these tips, it is evident that they will be successful in purchasing a fixer upper Chatham real estate.
For more information e-mail me at patrick@chathamontario.com with any questions you might have.