Real estate business is one of the most beneficial business you could get into. However, without proper information, you could end up making losses. Many beginners buy real estate property on speculation that it might appreciate. However, they end up losing due to miscalculations.
Here are the things you should know before buying a house to renovate:
Buying at the Right Price and at the Right Time
Buying right means that you should be able to buy the property at between 40-60% cost of the after repair value. If you intend to sell the property at say USD 200k, then you should buy it at around USD100k maximum. This makes sense due to the cost of repair and other overhead costs like the time you wait to get a buyer. Many contractors in Denver would tell you that foundation repair, kitchen repair and other sundry repairs are possible but refunding or changing your buying price is near impossible.
Buy Directly From the Seller
Buying directly from the seller could save you between 6-10% of the total cost of the property. If you cut off the services of the middleman, you are likely to get a bargain buy.
Concentrate on the Floor, the Bathroom, and the Kitchen
Many buyers will concentrate on checking out the quality of the materials used on the above. If the materials used are of good quality, you may end up selling the property for a high price. The painting used in the renovation also plays a crucial part in its aesthetic value which could affect the overall selling price of the property.
Look for Motivators to Buy the Property for Less
The most popular reasons why properties fetch less in the market include death, divorce, and downsizing. If couples are divorcing, selling their house makes sense, and they would take anything for it. Similarly, if a person lost their job and wanted to boost their liquidity, they would take whatever comes their way.
Equipped with the above information, inspecting a property should be easier than before.