Whether you want to do it yourself or hire a team of contractors, you should know what you are getting into when you purchase a fixer-upper. While the sales price might be enticing, you need to determine that the work required does not cost more than the newly built house down the street.
If you need to move in as soon as possible, then purchasing a fixer-upper might not be worth the headache of living amongst the rubble. However, if you are in a position to live elsewhere or do not mind the inconvenience, buying low and selling high can turn quite the profit if you are smart when purchasing materials and hiring help. There is a lot to consider when looking at the homes for sale in Silver Lake
. Whether you want a big or small project, you can find a home that will match your current needs.
Good things take time
You need to find your sweet spot when it comes to the amount of time your home should be under construction. Depending on how much work your new investment needs, you’ll need to create a realistic timeline and spring for the most experienced contractors who use quality materials. Cutting corners when fixing a home will greatly affect the sales price as well as drum up potential issues during inspections. While a turnkey property would be ready for you to move in immediately, a fixer-upper either means the home cannot be lived in until the repairs are made or you are committed to living amongst the chaos of home remodeling.
Building the home how you want
While time and money go into fixing up a home, the benefit is that you get to recreate the home to your exact specifications instead of paying top dollar for a property you want to gut and redesign anyway. While some homes are completely dilapidated, many have strong structural bones with an outdated design and layout. Opening up a wall and remodeling the bathrooms can bring a modern touch to the home while raising your property's value. While a fixer-upper does not bring instant gratification, building your dream home, instead of settling for someone else’s idea of a dream home, can be far more satisfying.
Less money upfront
When you consider your budget for a newly built home versus a fixer-upper, you should ensure that you are allocating enough funds to ensure the quality of renovations are up to the standards you envisioned, and most importantly the neighborhood. Silver Lake, like most of Los Angeles, is considered higher-end areas and buyers expect higher quality work, design and materials. While you may initially put down less on this new property, you will need to be careful not to exceed your budget during upgrades. Less money upfront means more money left in your hands. If you are deliberate with your spending, you can bring the least valuable property on the street up to the price point of other homes in the neighborhood. Restoring value to an older home can be a challenge, but recouping your profit after this investment is highly rewarding.
Keep costs low and sell high
When you are fixing up a property, either for personal use or to flip for profit, you will want your resale value to be higher than the initial cost of the property, materials, labor, and holding costs. You should never use cheap materials to fix up a home, as it will not hold up over the years. However, be sure to source the materials yourself and compare prices. By doing this, you can often save more money than if you had let a contractor compile the resources themselves. Unless you don’t have the time or energy, in which case, delegate.
If you have the time, energy and are talented at it, minor renovations like installing hardware on cabinets or painting walls can be done yourself, thus saving you money in the long run.
Always spring for the inspection
While the home inspection can be costly and time-consuming, when you are purchasing a fixer-upper, you will want to know exactly what you are getting into. If you simply want to give a worn-down home a facelift, you may break the bank when you discover foundational damage. You should always spring for an inspection when you are purchasing older homes, as these properties could have lingering damage unseen by the naked eye. You do not want to fix up a house that would be cheaper to tear down and rebuild. A home inspection can help let you know if you are biting off more than you can chew.
Loan options and permits
Be sure to consider hidden fees and cutting costs where you can. When it comes to fixing up a property, you should have every purchase mapped out ahead of time. You will want to be aware of any permits that are applicable to your area so that your window installation or room add-on is done within the confines of the local rules and regulations. Tickets from the city can be costly and often more than the initial permit was to begin with.
You should also look at different loan options that are available to homeowners looking to renovate. There are rehabilitation loans and renovation mortgages that can help you flip your home for a profit or revamp your space while improving your credit over time.
Work with a real estate professional
From Silver Lake real estate to the homes for sale in Beverly Hills, the Los Angeles real estate market continues to be a very popular locale for industry professionals coming to the Hollywood entertainment industry, as well as California natives looking for the best views of the city. Working with a highly experienced local agent will ensure that you have a guide with insider knowledge who can tailor your home search to ensure you find the properties that meet your needs, and that will be worth a lot more after the renovations.
When buying a fixer-upper in Silver Lake, you’ll want the experts like Emmanuel Xuereb and Salvator Xuereb at The Xuereb Group
by your side. Whether you need advice on what the value will be after the renovations, as well as assistance scheduling home inspections, negotiating on your behalf, connecting with reliable contractors for seamless renovations, or exploring various lending options, The Xuereb Group is ready to help you every step of the way. Contact them today
to get started on your fixer-upper home search in Silver Lake.