Feb 6, 2015
As the real estate market continues to grow, many homebuyers are deciding between move-in ready homes and fixer-uppers. Even within the newer communities of Hilton Head and Bluffton, there are lower-priced fixer-uppers that need a little TLC. Fixer-uppers usually have lower market value than homes around them because they haven’t been maintained or upgraded since they were built. Some historic homes may even be vacant for months or years.
Determining whether or not a particular home is a wise investment requires a lot of homework. You will need to find out how much the average home in the area sells for, and the cost of the most desirable homes in the area. It is generally a good idea to avoid run-down properties that will require extensive work or complete renovation. Instead, try starting with a fixer-upper that only needs some minor cosmetic work – new paint, hardwood floors, fresh landscaping, or upgraded appliances.
When looking for a fixer-upper home, some suggest you find the least desirable home in the most desirable neighborhood, and then decide if the repair and renovation expenses for the property are within your budget. Keep in mind: if the price looks too good to be true, it probably is. Be wary of serious issues that may not be immediately visible to the naked eye: plumbing or electrical issues, cracks in foundation, mold or infestation. Have the home checked before you start pouring your renovation dollars into it. Examine the fixer-upper carefully and figure out how much it will cost to fix any defects before you buy the home. It may also help to ask the neighbors about the home’s condition.
One of the easiest ways to figure out what the property might be worth is to look at a comparative market analysis. This will tell you what similar properties have sold for in recent years, and you can see the listing prices of other homes currently on the market.
Whether it is a good idea for you to purchase a fixer-upper will depend on your personal threshold for risk and your level of tolerance. Purchasing a fixer-upper can be a daunting project, but ultimately worth it in the long run. For more information on purchasing homes in the Hilton Head area, contact us today.
If you want to make a little piece of The Island your own, you need more than just a road map and a REALTOR. You need a partner who can make things happen.
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