Selling real estate can be just as much work as buying. There are so many things to worry about as you prepare your home to list on the market. Then you have to worry about the real estate agent you will hire to help you get the house sold. After that, you have to worry about who will be coming in to tour your home throughout the week. Will you hold an open house? Do you take the first reasonable offer you are presented with? Our blog was designed to assist you through the selling process a little bit easier.
Buying a home is part of the American dream. There are a lot of home renovation shows on television that can make the task of remodeling a home look enticing. Unfortunately, it can also turn into a downer when you end up sinking much more money than you expected because the home requires a lot more TLC than previously thought. Anything from termites to a cracked foundation can turn your fixer upper into a money pit. Before throwing a bunch of money into a home that you deem worthy enough, here are some of the things you need to consider ahead of time.
Hire a Structural Engineer
Before you get to work on renovating a home, you want to check out the inside components of the home to see what you are working with. You can expect to pay around $514 to hire a structural engineer. A good engineer could save you thousands of dollars by giving you an idea of what to expect. Major structural repairs can be very costly, so you want to steer away from those unless you are getting their engineering services at a great discount. You can expect them to inspect the foundation, curtain wall, insulation, and more.
Determine How to Finance the Loan
Unless you are paying cash for the home and renovations, you will need to secure a loan. The Federal Housing Administration offers a loan called an FHA 203(k) loan. This is specifically for those looking to purchase a home and do some renovations on it. One advantage to this loan is that it can save you on closing costs by combining your mortgage and renovation costs into one loan. One key thing to keep in mind is that the repairs need to be at least $5000 to qualify for this loan.
Discuss the Idea with Your Real Estate Agent
Your real estate agent should know the area extremely well and be able to offer you comp prices to determine if your purchase and renovations are right for the neighborhood. You want to be careful about not overbuilding in a neighborhood. This would make it harder to sell the home later. Instead, determine what the other homes around it are going for and then determine what your expected value will be to see if you are making the right purchase.
Check Out Tax Incentives
One great advantage of purchasing a fixer upper is the tax advantages you may be eligible for. Tax credits are sometimes given for property owners who are looking to add value to the property. This type of incentive is known as tax abatement. You will need to do your research and talk to your local tax office to determine if you are eligible for this.
Share8 August 2016
