Welcome to the Capital City Real Estate Group video blog! I’m Marc Iafrate, Broker-in-Charge of the Capital City Real Estate Group here in Raleigh. Today we are going to discuss ‘Fixer Upper’s’ in the Raleigh area and Understanding the Balance Between Purchase and Renovation Costs
Fixer uppers can come with huge price benefits and opportunity, as well as problems. Make sure you understand what you’re getting yourself into before you purchase a home that needs significant restoration.
Calculate your Budget Carefully
Do the math very carefully before jumping in. Add up the expected renovation costs based on a thorough evaluation of the property. As some of the expected costs will lie within a grey area, it is important that you base your estimation on the higher end of the price range. Be sure to account for all materials and labor.
Once you have calculated your expected renovation costs, subtract this number from the home’s projected post-renovation market value. It is important that you base this projection on comparable listings in the same neighborhood. Consulting a real estate professional can offer very valuable assistance with this step.
To be conservative, deduct at least another 10 percent for any unforeseen costs, mistakes, or issues that often arise. That final number should be the highest offer you make on the property.
Work with The Right Team
When looking for a fixer upper that is a sound investment, make sure that you have a solid team of professionals to work with. Choose a real estate broker who is familiar with the area and type of property that you are interested in, and make sure that all contractors you hire are not only competent to deal with the problems that you’ll face during renovations, but also who won’t cut corners. Aesthetically appealing housing don’t always pass inspections – it’s important to make sure that the property is fit for sale or it may never close at your asking price. Capital City Real Estate Group brokers are experienced and have helped buyers all over the Triangle Area make sound investments in real estate.
Aesthetic Problems Are The Best Problems
If you’ve managed to find a home that’s in great condition, but is visually unappealing, you may have found yourself an excellent fixer upper. Ugly carpet, old appliances, and tacky wallpaper are easy fixes that won’t eat up much of your budget or your time.
Asbestos, leaky water lines, a cracked foundation, or a rotted frame are examples of more significant issues that will require the help of a professional. Be wary when investing in a property that has one or several of these problems, as they are the kind of issues that snowball into larger costs and a longer timeline for repairs.
Ready to find a great fixer upper and tackle it as your next investment? Contact us today at the Capital City Real Estate Group in Raleigh to find your very own fixer upper.
To search all homes for sale in the Raleigh area and surrounding communities, visit this link to our website http://search.capitalcityrealestategroup.com/search-landing.php
Marc Iafrate, MBA
Capital City Real Estate Group
(919) 390-7810 Office
8319 Six Forks Road, Suite 201
Raleigh, NC 27615