Renovating fixer-upper homes can be time-consuming and costly, but you can save money if you plan out the repairs wisely. You can still save money on the investment by following some easy tips.
Homes that require repairs or renovations to make them better living spaces or to increase property value are referred to as fixer-uppers. The practice of earning high ROI on such homes is called flipping.
In the world of real estate, fixer-upper homes are properties that require repairs, usually in the form of redecoration, redesigning, or reconstruction. Most buyers who are interested in renovating fixer-upper homes either want to make the living space better for themselves or increase property value. The latter practice is known as flipping.
Whether you want to transform your home or are renovating to flip either way, you must spend your money wisely. We review some of the best tips for saving money when renovating fixer-upper and older homes.
Work With A Reputable Renovation Contractor
While the market is filled with countless home renovation contractors, you must choose one who knows how to handle fixer-upper homes. Here’s what you need to look for in your contractor:
- References for prior work
- Insurance and license
- Online reviews
- Experience
When there is a need for extensive repairs, it’s best to hire a contractor to do the job. Make sure you take quotes from multiple contractors and choose the most feasible option, but don’t compromise on quality either. A well-reputed and experienced contractor should always be your first choice.
Set Up A Realistic Budget
Budget is everything when it comes to home renovations. Always make an estimate of all costs, including material, labor, and sales tax. Moreover, you should always leave room for a buffer to counter any surprises.
It’s wise to keep approximately 20% of the total budget for the buffer. Another thing you can do is create spreadsheets and make two separate columns, one for the estimates and the other for the actual price.
Fill out the actual price column after purchase, and you can measure how much of your budget is left. It helps you get real-time information about your spending, which is vital for flipping.
Shop Wisely
New materials will always cost more; wait for clearance sales and discounts to get them at a lower price. You can also shop from places that have coupons or cash-back features. Moreover, used parts can also be suitable for certain applications, such as sinks, wooden items, etc.
Rely On DIY Whatever Is Applicable
DIY projects aren’t always recommended, but a few basic tasks such as painting walls, floor installation, landscaping, and trimming are some cosmetic repairs anyone can do. When in doubt, refer to YouTube tutorials, which can save you a considerable amount.
Final Notes
Renovating fixer-upper homes doesn’t need to be as costly as you might have thought. A few basic tips and tricks can help you save a significant amount of money. You can also earn a high return on your investment.
