The dos and do nots of Buying a Fixer Upper Home in Dufferin County
Distressed real estate is real estate in need of serious repairs. These properties are often called “handyman specials.” If you have the skill or the money to complete the repairs, you can often find great deals. Here are some dos and do nots of buying distressed homes and real estate across Dufferin County.
Do get a Home Inspection. Distressed homes need repairs. Some of these repairs, like broken floor tiles are easy to see. Others, like water damage in the attic, can be easily hidden. The only way to know for sure what you are buying is to have that Dufferin County property inspected by a professional home inspector.
Do pay attention to the Home’s Market Value. You do not want to buy a home and spend your hard-earned money for repairs only to find out that this home is worth less than you paid for it. Have your Dufferin County real estate agent complete a comparative market analysis so you know what the true value is worth.
Do have an Estimate for Repairs. There is no point buying a distressed Dufferin County property if you cannot afford the cost of the home and the repairs. Get an estimate from at least three local contractors before you buy. Knowing beforehand the cost of repairs will help you make the best decision.
Do not think about Potential Profit. You have probably heard countless stories about people who bought distressed properties and sold them for outrageous profits. However, the reality is that most distressed homes are sold for a small profit or no profit.
Do not buy a Home just because the Price is right. When you buy distressed homes, you have to consider more than just the asking price. Add together the cost of repairs, insurance and what you can realistically expect to make from the sale. This will tell you if the home really is a good investment or not.
Do not buy if you do not have the Money. No matter how good a deal you find on distressed homes, they are not worth it if they will stretch your budget too far. The last thing you want to deal with is damage to your credit score and the risk of foreclosure in the event you cannot pay for the home.