A Mini Guide to Purchasing a Fixer-Upper Home

For many first time buyers or those looking to earn extra money in the property industry, buying a fixer-upper property is often the best choice. Why? Well, according to research conducted by Direct Line Home Insurance, fixer-uppers can often be purchased for around 17% less than the market average. Not only is this a more affordable option, but homeowners have the perfect opportunity to put their own stamp on the property and make a great little profit if they decide to put it on the market.

Fixer-upper properties, as the name suggests, are homes that are in need of renovation work or need to be updated throughout. In many instances, these types of properties were owned by elderly residents so are in need of modernisation or are put up for auction in order to get a quick sale. But, there are some factors you need to consider when buying a fixer-upper property including the type of property you’re looking for, your budget and renovation plans.

In this blog, we provide a detailed guide to inform you about taking on a renovation project and how to make it work for you. Read on to learn more.

What kind of property are you looking for?

The first thing you need to think about is what kind of property you’re looking for. To answer that consider what kind of project you want to take on and how the property is going to be used, for example, are you buying your first home or looking for a property that you can sell on or rent out? Not all fixer-uppers require a complete overhaul in terms of construction work and installations so don’t purchase a property that needs a lot of work if you don’t have the time or budget.

Get a building survey done and view the property

When some properties go to auction, you may be tempted to judge the property off of the details provided by the auction house and sellers. While this can give you a detailed overview, seeing the property in person is always a good idea. Viewing properties will help you to understand the extent of work that’s needed so you don’t experience any nasty surprises!

You should also consider having a building survey done as this will reveal the true condition of the property such as structural issues that need to be addressed. Although the property may look like it’s in fairly good condition, you never know until a survey has been done. If more work is found than what was initially included, this is a good bargaining tactic for lowering the asking price.

Where can you find fixer-upper properties?

You can often find amazing deals with local estate agents so keep an eye on websites such as Rightmove and Zoopla. However, because these types of properties often need a quick sale you should also look at auction sites to find amazing deals. In this case, you will usually need to pay the deposit within a few days of securing the property at auction to finalise the sale.

What can you do to renovate the property?

The possibilities are endless when it comes to renovating your property. But, before any cosmetic changes or extensions can be done it’s important that you fix any structural issues. Once this has been done, you should think about your larger plans for the property. If you plan on making it your family home then you may want to take your time and carefully remodel the home to suit your needs or completely renovate rooms such as the kitchen or bathroom. If you plan on selling the property, then your main focus will probably be getting the property is a modern and liveable condition.

Popular renovation plans include:

●     Extensions

●     Loft conversions

●     Knocking down walls

Cosmetic renovations include:

●     Installing a new kitchen and bathroom suite

●     New flooring

●     Updated appliances

●     New windows and doors

●     Modernised decor

At Integrated Designs & Associates, we understand that building a home or renovating your current property is a big job, so make sure you have someone experienced in the field to help you along the way. By using our services, you can rest assured that your renovation will go smoothly whether you need help with an extension or remodelling your property. Contact us today for more information.

How much should you budget?

While buying a fixer-upper can save you money on your mortgage, you do need to have money put aside for the renovations. Of course, this depends on how much work needs to be done and how quickly you want to do it - this is why having a survey done is so important as you can then create a rough idea of costs. For a property that requires structural work and work done on several rooms, you could be looking at £40,000+. However, if the home is simply in need of modernisation this price will be significantly less.

Why purchase a fixer-upper?

With all of the work that goes into buying and renovating a fixer-upper home, is it really worth it? As long as you do things the right way, these types of properties could be the perfect project for a first-time buyer looking to save money or make a profit. As the property market increases in price, it’s become harder for people to buy so choosing a fixer-upper is often your best option.

Advantages of buying a fixer-upper include:

More affordable: Saving for a deposit can be hard, especially if you are renting at the same time or have children. Since fixer-uppers are usually much cheaper, this makes it easier for people to get on the property ladder and secure affordable monthly repayments.

Wider choice of location: When you start looking at fixer-uppers as well as other properties, you have a greater range of locations to choose from. In fact, you may be able to secure a property that was considered unaffordable just by purchasing a fixer-upper instead of a modern home.

You can add value to the property: While properties such as new builds are very convenient and allow you to move straight in without little to no work needed, there is often only a small opportunity to add value. On the other hand, fixer-uppers can be transformed into amazing family homes and leave you with a substantial profit when you decide to sell up. 

Integrated Designs & Associates: Domestic Services to Enhance Your Property

If you’ve bought a fixer-upper property then you may be thinking about adding an extension or completely redesigning the home, but you’ll need an experienced and reliable team that can help. At Integrated Designs & Associates, we offer a range of architectural services across Birmingham to make your designs ideas a reality.

Over the years, we’ve worked on a number of domestic and commercial projects helping our clients achieve the high-quality results they want. Our team is on hand to help with your entire project from getting planning permission to designing and managing the build so you have the right professions by your side.

Hire an architectural team that you can trust. Get in touch with us today to find out more about our services.