Real estate terms, you’ve heard plenty of them, but may not entirely know what some may mean. One good example of a common, but often misunderstood, real estate term is “fixer-upper house”. If you’re planning on owning one of these houses, here’s some important information you need to know.
First, what is a “fixer-upper”? Simply put, a fixer-upper is a property that needs to be repaired or fixed. Owners can redecorate, redesign and reconstruct any aspect of the house. However, most of the time, this house can be used as it is. Buyers who are interested in raising the property’s value, after they have fixed or repaired it, will be interested in these types of houses. This practice is also known as “flipping”, flipping the value of the house through renovations and repair.
Any time is a good time to buy a fixer-upper house in Vegas, but, depending on the condition of the house, it could also mean more expenses on the repairs. Sometimes, the damages are minimal, which makes it easier to save money.
The Cost of Repairs for a Fixer-Upper
Buying a fixer-upper house can be a good investment, but how much does it cost? Truth is, prices may vary since some properties may need more repair than others. In order to know how much it will cost you, it’s best to have the house undergo a proper assessment. This can help you see if improvements make sense, given the price you bought the property at.
What is the Best Kind of Fixer-Upper House to Buy?
First-time fixer-upper buyers usually want a property that’s in good condition and has minimal damage to fix. However, the best kind of fixer-upper is the one that has peeling wall paints, torn and worn carpets. In short, houses that have these kinds of problems are the ones worth buying. These types of properties can be easily fixed and turned back into a pristine condition. These types of house are the ones that usually sell like hot cakes in the market.
Not All Fixer-Upper Houses are the Same
If you are new to buying fixer-upper houses, it is important to understand that not all houses are the same. Not all properties are profitable in the future once they’ve been repaired. Before jumping right into buying a fixer-upper, here are a few important things you should know:
- Location – It is important that you keep the location of the house in mind. You don’t want to buy a house in the middle of nowhere, right? It would be a hassle for you and your buyer. Keep in mind that location is important, so as you go around and look for houses, make sure that it’s at an ideal location. Near an intersection or close to a landfill? That’s a no-go! A house that is located near or next to a school is also a big no. In short, look for a house that is located in places that are desirable. Ask yourself if you would like to live in that location if you are going to sell it. If you can’t see yourself living in such a place, what makes you think that your buyer would? Makes sense, right?
- House’s layout – Always check the house’s configuration. This will help you determine if that three-bedroom house is appealing to buyers or if they’d want something else. The layout of the house is just as important as its location. Buyers will always look at how a house looks on the inside and whether or not it is a practical purchase for them. A fixer-upper house that has a bad layout may mean more difficulty selling, so make sure you check it well. Also, consider the type of buyers you are targeting. What works for couples without children may not work for those who have children and vice versa.
Let’s Talk About Vegas
Las Vegas is notorious for its busy nightlife, casinos, and strip bars. Thus, the name Sin City was coined. While the state is known for being a gambling haven for many tourists, a lot of these people seemed to be enjoying the place and have even found themselves buying properties. Now, this sounds like a good idea, but have you asked why a lot of people are purchasing fixer-upper houses there? If you are planning to get one in the future or already looked into it, here are a few good reasons why you should have one in Vegas:
It’s home to many rich people as well as luxurious houses. In fact, Las Vegas has been growing rapidly these past few years. In a few years time, the value of a property will skyrocket. With the ever-increasing population and people moving to this part of the state, it’s not surprising that a lot of them will be looking for a place to stay temporarily or permanently. So, investing in a fixer-upper house in Las Vegas as early as now is a good idea! If you plan on getting profits in the future, invest now.
Now that you know why a lot of people are moving and buying fixer-upper houses there, is it really a good deal? How will you know if your investment is as promising as you hoped it would be?
Signs of a Bad Fixer-Upper House Investment
The idea of putting your money in an investment sounds like a good plan, but what if it goes sideways? Before you decide to purchase a house and repair it for increased profits, you should know what to look for. There are a few things you need to keep in mind when you are looking into a fixer-upper house and you must avoid them at all cost. Here are five bad signs that in a fixer-upper house:
- The layout is poor – Keep in mind that a house’s layout is important since you will be weighing the pros and cons if it’s a practical house to flip. If at first glance the house looks oddly designed, don’t purchase it. Always check the floor plans first so you can tell if the placement of the rooms is practical. If the floor plan is bad, there’s a big chance that you might have to reconstruct everything in the future. This just adds more expenses in your budget, let’s try an avoid that.
- Bad foundation – A good house to fix usually requires minimal changes. It usually doesn’t require a lot of changes and if there’s any, it shouldn’t require a lot work. However, if the house you are looking into has a pretty bad foundation (also known as the base or frame of a house), you might need to add to the property. Foundations with cracks are poorly constructed; it’s just a sign that says “This investment isn’t worth buying”.
- If the house is being forced to be sold – You can always tell that something is up when the seller of the house is literally forcing you to buy it. It could be due to a lot of reasons other than gaining profits, but a house being sold should not be forced upon anyone who isn’t sure about the place. So, if you feel like that owner of the house is “dying” to sell it, walk away. You might just be walking into a financial disaster even if you try to fix the house and sell it.
- The house is in a poor location – Again, location is important. Make sure that the house you are trying to buy is not located in a railway area where future owners might not like, near an intersection where traffic is crazy, or there are more abandoned houses than there are actual neighbors. This could be a sign that you won’t get your money back as quickly as you expected if you choose to buy the fixer-upper.
- The house is sold “as is” – While some houses that are sold “as is” are great, there are plenty of reasons why it’s not always a great investment. It could be that, the house has major repairs to be done, it has been abandoned for a long time, or the foundations are not as reliable. However, if you want to invest your money in a house that is sold “as is”, then be sure to examine and appraise the house properly. That way, you know if you can still profit from it or not.
With its fast-growing economy, Las Vegas is pretty much an ideal place to live in. If you are planning to buy a fixer-upper house and want to invest in that property, then go ahead. Knowing the costs of repairs is important, this way you can prepare for the reconstructions you’ll have done in the future. Don’t forget to watch out for the signs mentioned above, this way you can avoid poor investments in the future.