Sometimes your dream home isn’t quite dream-worthy when you purchase it, but with a little bit of elbow grease and some tough love, even the drabbest of houses can turn out fabulous. But buying a fixer upper isn’t always easy, so that’s why we’ve put together these quick tips to guide you through the process.
Set a Budget
Fixer uppers come in all shapes and sizes, so deciding how much money you are able to spend on its renovations is an essential first step in the process. Certain houses might need to be completely gutted, while others might only need updated bathrooms, significantly cutting down on the cost.
Bring in a Home Inspector
While home inspectors are an important part of any home closing, they are an especially vital step when purchasing a fixer upper. You will want to bring in an outside inspector to ensure that the home’s foundation, heating, plumbing, electrical, etc. are up to code. If they are not, you will need to work with the seller to see if these things will be repaired before the sale, or they intend to sell the home “as is.”
Hire a Contractor
Let’s face it: no matter how much time you might spend repinning interior design ideas, you are not a professional. Even if you are especially handy, you will still want to bring in an expert for all major renovations to make sure everything goes smoothly.
Obtain the Correct Loan
If you plan on doing major renovations, you can apply for a type of financing called a renovation loan. While there are different types, the 203(k) is the most popular because of the breadth of people who are able to qualify. It also doesn’t hurt that it is backed by the Federal Housing Administration.
Seek out Tax Credits
If your home is considered a historic structure in the state of Maine, you could be eligible for a number of tax credits for renovating it because you are preserving the community’s history.
Maine also offers tax credits for homeowners who increase the energy efficiency of their homes. You can do this by installing different windows, revamping the HVAC system, or even switching to solar energy. To discover more about the program, please click here.
If you are interested in buying a fixer upper and would like help navigating the process, please contact us.