Fixer Uppers: What Should First-Time Buyers Look For?
By: Sarah Greenleaf, PR Intern | October 20, 2009
Over in Zillow Advice user Mnikishyn asks:
She continues -
There’s property that I am interested in, priced at $365K. Realistically, I’d like to get it for no more than $300K, but what is the best way to negotiate? Any tips/advice/resources very much appreciated.
Any advice on what to look out for when buying a fixer upper?
- Stumble it!
- Categories: Real Estate Advice
Comments
2 Comments so far
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Brenna Harrington on October 20, 2009 7:46 pm
I would recommend having a contractor look at the home before you make an offer and give you a bid on the cost to fix it up. If you intend to fix the house up yourself, you can still use the bid in your negotiations, but it may be appropriate to offer the contractor a flat fee up front if you don’t intend to hire him/her for the job.
If he house needs a substantial amount of work, showing the cost should help in the negotiations. If you only intend to pay $300,000, I would offer not too far from that, and just make it clear that you will not overpay for something that requires so much capital right away. There are not many buyers in the position of having extra cash leftover after their down payment and closing costs to afford much of a rehabilitation.
I hope this helps!
Ken Flaspohler on October 22, 2009 3:23 am
Don’t make the common mistake of running out of money. Always put in a contingency amount for things you can’t see from an initial inspection.
Do the work professionally. I have seen many homes “fixed up” and the quality of workmanship is poor. This will cause the owner to not achieve the value they hoped or could.