Fixer upper is a term that is used for a house that needs repairs. The fact that fixer uppers are available at attractive prices lower than their fair market value makes them allure for many investors. You can book profit by buying such a house and selling it later after refurbishing it to make desirable for buyers. Reality TV shows make buying fixer upper a very easy and smooth exercise. However, there are many warning signs or red flags that you must watch out for when buying a fixer upper.
Do not ignore the location
You are going to invest a sizeable amount of money even if the fixer upper is available at a low price. The location of the property is very important as it decides the resale value. If the location is remote or not easily accessible, all your money and effort can go to a waste in future.
Look at the condition of the foundation
If you see a damp or wet basement upon your visit, it could be because of a crack in the foundation walls. If this is indeed the case, you could end up paying thousands of dollars in repairs to rectify the condition of the foundation.
Don’t buy if the rood condition is very poor
Roof of a house is a very important and integral component of the structure. If the roof has been ignored for a very long time and you find it is a bad shape, it is better to stay away from such a fixer upper. Repairing or replacing the roof can be a very expensive and time-consuming exercise. Also, a rotting roof can easily cause big damage to the structure of the house from inside.
Don’t be fooled by the looks and smell of the fresh paint
Many a times, owners try to fool the investor with the help of a fresh coat of paint. You will find the house warm and inviting and it will also look very attractive because of the newly painted walls. But this paint may have been done to hide the mold or the marks created by water intrusion. Painting also diverts attention from saggy walls and ceilings. Make sure you carry out a close inspection of the condition of the walls and do not fall prey to the fresh paint.
In addition to these warning signs, you should also take a closer look at the plumbing lines and the electrical lines when buying a fixer upper.