Elaine Pavasaris' 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.
If you recently bought or sold a house and need to move in the near future, there is no reason to put off packing. However, procrastination sometimes can get the best of people and lead individuals to wait until the final possible moment to pack.
Packing items at the last minute can be stressful. As such, it is important to do everything possible to avoid the risk of packing procrastination.
Lucky for you, we're here to help you prep for your upcoming move and ensure all of your belongings are packed and ready to go for moving day.
Now, let's take a look at three tips that you can use to overcome packing procrastination.
1. Plan Ahead As Much As Possible
Although it may be several weeks or months before you need to leave your current address, it never hurts to start planning for moving day early. That way, you can identify any potential moving day hurdles and eliminate these obstacles as quickly as possible.
To plan ahead for moving day, take a close look at your belongings and determine which items you intend to keep. If you have excess belongings, you should sell, donate or dispose of these items as soon as you can.
In addition, you may want to reach out to local moving companies. If you hire a moving company today, you'll be able to receive expert support when you finally transport your belongings to your new address.
2. Eliminate Distractions
Let's face it – life is busy, particularly for those who are moving to a new city or town in the foreseeable future. Therefore, it pays to eliminate distractions that may hinder your packing efforts.
For example, if you spend several hours each day browsing the web, you may want to use some of this time for packing. You can even reward yourself with a few minutes of exploring the web for every hour that you pack.
Remember, you need to pack your belongings to ensure you can vacate your current address by a specific date. If you remove distractions along the way, you can increase the likelihood of packing all of your belongings in time for moving day.
3. Reach Out to Family Members and Friends for Assistance
Contact family members and friends for assistance as you prep for moving day – you'll be glad you did. These loved ones may be able to lend a helping hand with packing. Plus, family members and friends likely will hold you accountable for your actions and ensure you can stay on track with your packing goals.
Lastly, if you require additional help with your upcoming move, you may want to reach out to a real estate agent. This housing market professional can put you in touch with the best moving companies in your area to help you streamline the moving process.
Remove the risk of packing procrastination – use the aforementioned tips, and you should have no trouble preparing for moving day.
A successful home selling experience is not a guarantee. However, if you prepare for the house selling journey, you may be better equipped than others to reap the benefits of a quick, profitable home selling experience.
Now, let's take a look at three tips so you can set yourself up to succeed during the house selling journey.
1. Identify Your Home's Strengths and Weaknesses
Your home has served you well for many years, yet your residence still has flaws. Fortunately, if you allocate time and resources to identify your house's strengths and weaknesses, you may find ways to improve your residence before you list it.
Consider the buyer's perspective – you'll be glad you did. If you take an objective view of your residence, you may be able to identify assorted home problems and correct them right away.
Also, it may be beneficial to conduct a house inspection. Following an inspection, you'll receive a report that outlines any underlying problems with your house. You then can use this report to prioritize home repairs and upgrades.
2. Establish a Competitive Initial Asking Price
As a home seller, it is important to do everything you can to establish a competitive initial asking price for your residence. Thanks to a home appraisal, you can gain the insights you need to price your house appropriately.
During a home appraisal, a property expert will evaluate your home and various real estate market data. Next, this property expert will provide you with a property valuation. With this property valuation in hand, you can set an aggressive initial asking price for your house.
Maintain flexibility with your home price, too. And remember, if you upgrade your home before you list it, you may be able to receive multiple homebuying proposals at or above your residence's initial asking price.
3. Collaborate with a Real Estate Agent
For those who want a helping hand throughout the house selling journey, it may be a good idea to hire a real estate agent. Because if you have a real estate agent at your side, you can receive comprehensive support at each stage of the home selling journey.
A real estate agent is happy to teach you about all aspects of the house selling journey and ensure you can plan accordingly. He or she can help you identify your house's strengths and weaknesses, price your home appropriately and much more. Plus, once you list your residence, a real estate agent will set up home showings and open house events to promote your property. And if you receive an offer to purchase your house, a real estate agent will help you analyze this proposal and make an informed house selling decision.
If you want to take the guesswork out of selling your home, you should start preparing today. By taking advantage of the aforementioned tips, you can plan ahead for the house selling journey and set yourself up for a successful home selling experience.