Thinking about a ‘Fixer Upper’? Understanding the Balance Between Purchase and Reno Costs

Fixer uppers can come with huge price benefits and opportunity, as well as problems. Make sure you understand what you’re getting yourself into before you purchase a home that needs significant restoration.

Carefully Calculate

Do the math very carefully before jumping in. Add up the expected renovation costs based on a thorough evaluation of the property. As some of the expected costs will lie within a grey area, it is important that you base your estimation on the higher end of the price range. Be sure to account for all materials and labor.

Once you have calculated your expected renovation costs, subtract this number from the home’s projected post-renovation market value. It is important that you base this projection on comparable listings in the same neighborhood. Consulting a real estate professional can offer very valuable assistance with this step.

To be conservative, deduct at least another 10 percent for any unforeseen costs, mistakes, or issues that arise. That final number should be the highest offer you make on the property.

Work With The Right Team

When looking for a fixer upper that is a sound investment, make sure that you have a solid team of professionals to work with. Choose a real estate agent who is familiar with the area and type of property that you are interested in, and make sure that all laborers you hire are not only competent to deal with the problems that you’ll face during renos, but who won’t cut corners. Aesthetically appealing housing don’t always pass inspections – it’s important to make sure that the property is fit for sale or it may never close at your asking price.

Aesthetic Problems Are The Best Problems

If you’ve managed to find a home that’s in great condition but is visually unappealing, you may have found yourself an excellent fixer upper. Ugly carpet, old appliances, and tacky wallpaper are easy fixes that won’t eat up much of your budget or your time.

Asbestos, leaky water lines, a cracked foundation, or a rotted frame are examples of more significant issues that will require the help of a professional. Be wary when investing in a property that has one or several of these problems, as they are the kind of issues that snowball into larger costs and a longer timeline for repairs.

Ready to find a great fixer upper and tackle it as your next investment? Give me a call!  J.P. Cook – 602-320-4253.

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2329 E Bowker Street Phoenix, AZ 85040

$460,000

4 Beds

3.5 Baths

3,073 SqFt

Status Active

MLS # 6687666

Property Type Single Family Residence

Price Type --

Here's a great opportunity to own a large 4 bedroom 3.5 bathroom home in an amzingly convenient Phoenix neighborhood. Features include: Tiled floors Large kitchen with tons of counter and cabinet space, Gas stove, built-in surround sound in family room, loft and patio, large covered patio, fireplace, huge master suite, Built-In BBQ area. The neighborhood features mature trees, parks, playgrounds, a basketball court and a community pool! home is located just minutes from just about anything you could want or need. There's restaurants, easy freeway access, job opportunities, golf, hiking and more just minutes away. You'll also be close to Downtown Phoenix, Sky Harbor, etc. Hurry and take a look! *The sale may be subject to Court approval.

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11865 N Allegro Road Maricopa, AZ 85139

$460,000

3 Beds

2 Baths

1,440 SqFt

Status Active

MLS # 6684957

Property Type Single Family Residence

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Nearly 5 acres of fenced horse property with a site built metal frame block stucco home! Home has recently been upgraded with wood-look tile flooring throughout! Spacious bright kitchen, includes all appliances & large breakfast bar w/storage overlooking living room! Primary bedrm & bath have jetted tub, remodeled vanity, walk-in & secondary closets. Guest bathrm has matching remodeled vanity. Huge laundry rm connects to primary bath w/door provides privacy. Key items include: 400' deep well & 2 neighbors pay for water usage, 45x36' concrete slab ready for supersized garage, gravel driveways, storage sheds, new water heater, watersoftner, fans thru out, full covered front patio, newer exterior paint & 7 pine trees w/irrigation. All this in quaint Hidden Valley surrounded by mountains!

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5843 W Crocus Drive Glendale, AZ 85306

$460,000

4 Beds

2 Baths

2,130 SqFt

Status Active

MLS # 6686851

Property Type Single Family Residence

Price Type --

Beautiful home in highly desired area featuring spacious split floorplan, large bedrooms, newer kitchen cabinets with granite, eat-in kitchen nook, formal living and dining and large family room! Newer light fixtures, ceiling fans, covered patio and a private pool for entertaining in hot AZ! Plenty of parking space, extended driveway, 10' RV gate with concrete pad for your toys and much, much more!

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854 S Cerise -- Mesa, AZ 85208

$460,000

4 Beds

2 Baths

1,769 SqFt

Status Active

MLS # 6686531

Property Type Single Family Residence

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Highly sought after 4 bedroom single level floor plan rarely on the market. HVAC replaced in 2019, Water Heater in 2023 Sstainless steel appliances plus washer & dryer convey. Neutral Two Tone Paint Throughout home. The 2 car garage has epoxy coated floor. OLD REPUBLIC Home Warranty in place & transferrable to Buyer. This home has lots of upgrades including granite kitchen counter tops, tile floors in all the right places, ceiling fans throughout, all appliances included, desert landscape in front yard & paver hardscape with synthetic grass in rear yard for easy maintenance. This is a gr spacious single level home located in a gated community within close proximity to nearby schools, city park as well as shopping, dining, medical center & easy freeway access. This is one you have to see

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