Repair Costs for a Fixer-UpperMay 27, 2016
Three bedroom home for sale in Santa Rosa Beach for less than $200,000? When can we see it? That’s the first logical thought comes to mind when a home like this is listedÂ in the area. The next, is even if it needs a little work that is okay because it was such a bargain. After all, it seems like everyone these days is into the idea of a “fixer-upper.” What’s not to love about a cheap home that you can add your own personal touch to?
If and when you do buy a fixer upper house, it is important to remember that you can save a ton of money or get yourself into a financial fix. Before you pull the trigger, the trick to buying a fixer upper is to determine how much you can afford and what you can do yourself. If you can, schedule a walk-through with a contractor so that he or she can provide you with a cost estimate. For handy-er buyers, price out the supplies. Either way, be sure to tack on 10% – 20% to cover unforeseen errors.
To make sure you’re offering a “fair” purchase price, take the fair market value of the property (which is what it would be worth if it were in good condition) and subtract the estimated upgrade and repair costs.
Lastly, as you make an offer, be sure to include inspection contingencies. For more tips and tricks on buying a fixer-upper house in South Walton, contact a RE/MAX Southern certified distressed property expert.