Negosentro | A guide to finding a fixer-upper property | If you’re a budding property developer who’s looking for a project to inject some value into, or perhaps someone who wants to find a forgotten bargain that you can turn into your dream home, then you need to know what to look for in a fixer-upper property.
The reason why the process of finding a fixer-upper property is so difficult is that there’s a very fine line between disaster and success. Understanding the difference between a property that has potential and won’t be hideously expensive to renovate, and a dilapidated property that’s beyond repair and is a ticking financial time bomb, is crucial.
While there’s no scientific method for finding a great fixer-upper property, you can certainly apply some basic principles which can help you to separate the projects with potential from the financially ruinous ones. For instance, you need to assess whether the property is structurally sound or not, which is arguably the biggest difference between a suitable fixer-upper and a doomed wreck.
Here’s a guide to finding a great fixer-upper property for you to work on:
Is the house structurally sound?
As already mentioned, you need to ensure that the core-shell of the property is structurally sound. This is vital because if it isn’t, you’ll have to either spend a monumental amount of money trying to replace or reinforce the structure or knock the whole place down and start again.
The structure of the house includes the foundations, the walls, and the ceilings, as well as the roof. You’ll need to check for subsidence in the foundations, which can crack and disfigure the entire building, as well as whether the walls can still safely support the weight of the building.
Lastly, you should check if the roof is completely beyond repair. Depending on the size of the house, it may not matter as much about the quality of the roof if you have a healthy budget, because you can always replace it with a shingle roof Florida.
Can you put additional value into it?
Another key indicator of whether a certain property is the right fixer-upper project for you is if you can put additional value into it.
The problem that many people face with fixer-upper houses is that they pour so much money into the project that they never realize any profit from it when they eventually come to sell it.
If you simply want the house to be a residential project that you live in for years, then this isn’t so much of an issue (although it can still leave you vulnerable if you go over budget), but if you want to flip the house as soon as you’re finished, then you need to ensure that you can put enough value into it that you can sell it on for a profit.
Are there planning issues?
A hidden issue that many developers fall into the trap of is planning permission problems.
You need to ensure that you have the necessary permissions from local authorities to make the changes that you want to undertake, otherwise, the property is essentially worthless.
