It’s not uncommon these days for homebuyers to go for a fixer-upper in order to save some money, especially with the current state of the housing market. However, those who don’t adhere to a strict budget will spend way more than they initially anticipated. If y’all have considered going down this route for your next home, check out these tips on how to keep a fixer-upper within your predetermined budget.
Be Smart With Your Initial Purchase
The cost of every fixer-upper project starts with the initial purchase of your home. While housing prices typically take the current state of the property into account when they first get put on the market, this isn’t always the case. Some home sellers try to take advantage of naïve buyers and upsell them on a home that needs much more work than it seems. Be sure to research each listing that you’re interested in thoroughly.
If y’all want to make sure you don’t overpay for a home, try looking into short-sale properties. There are many benefits to buying a short-sale home, but the best one is the fact that they’ll almost always be under market value. This is because the sellers are typically in a rush to get it off their hands, which will help you start at a much lower initial cost, expanding the size of your budget.
Try To Overestimate Your Expenses
Once you’ve found your fixer-upper, it’s time to figure out what y’all need to fix. When doing so, it’s best to overestimate how much it will cost you to repair each issue. Not only will this help y’all cover any unforeseen issues, but it will also keep you from taking on unnecessary projects early on. After completing all the most important tasks, you can use any left-over money from your budget for more personal projects—or you can simply save it.
Tackle the Essential Projects First
Regardless of which projects y’all decide to do, it’s best to start with the most vital ones. The main reason for this is that if you ever reach the point of going over budget, you will at the very least have the majority of the house completed. You can then complete the rest of them once you’ve earned enough money to do so rather than go into the negatives.
Also, doing the essential stuff first will allow y’all to move in quicker. Too many people make the mistake of moving in after completing everything. When they do that, they are paying for two houses for much longer than they need to, which eats away at their budget. If y’all can move into your new home sooner than expected, then you can sell your old one sooner, giving you more money to work with.
Find a Nice Middle-Ground on Purchases
My last piece of advice on keeping your fixer-upper within your budget is to find a nice middle-ground on purchases. Y’all don’t want to go so cheap that everything breaks down in a few years, but you also don’t want to go so expensive that you run out of money too soon into the project. Buying items somewhere between the two extremes is always the best option when fixing up a house.