Finding the Worst Home in the Best Neighborhood
Guest Post by Dakota
Every neighborhood has one home that stands out like a sore thumb. Even the nicest residential developments contain at least one house that has been neglected or otherwise has a lower value than the homes around it. Having a knack for finding this type of house is one of the most prized skills in real estate and can pay off big if you’re able to find a home that’s valuable but has fallen into disrepair. For those that aren’t afraid to get their hands dirty by doing some repairs, buying the worst home in the best neighborhood can be one of the top ways to make out like a bandit with a low-cost real estate investment.
What Are Your Plans for the Home?
No matter your age – the first day of school is always a bit scary. Reassure your kids that their feelings are normal. To show them that you’ve been there comfort your kids with stories about how you survived your own first days of school (or tell them about a scary situation that you made it through just fine)!If you’re planning on moving in immediately, buying a bad home in a good neighborhood might be a bad idea. It’s incredibly uncomfortable to work on renovations in the place that you’re currently living, especially if the entire house has problems. If the bathroom works and one of the bedrooms is fine for sleeping in, then moving into a broken-down house right away might work for some people.
But if the kitchen is inoperable, the ceiling is caved in, and there are holes in the walls, you might want to post up elsewhere until the repairs are complete. If you’re not planning on living in the house at all, you can buy it as an investment and let it sit for as long as you like until you’re ready to take the plunge and get underway with the repairs.
When looking around for the perfect fixer-upper, it’s also important to determine your long-term plans for the home right away. If you’re buying a home to remodel as an investment, you’ll want to fix up the house in a way that any potential buyer will enjoy. If you’re planning on living in the house yourself, however, you have more freedom in the aesthetic and functional decisions that you make when renovating the home.
What Makes a Neighborhood the Best for You?
While it may be tempting to think of the best neighborhood as being the most prestigious area in the richest city, the qualities that make a neighborhood the best vary from person to person. The best neighborhood for you is the place that you want to live. When taking a look at different neighborhoods, imagine yourself living in that area every day, living with your family or raising children, walking those sidewalks, going to the parks in the area. Truly immerse yourself in the environment in order to learn if the neighborhood is right for you.
To find out which type of neighborhood is perfect for your individual preferences, it can be helpful to write out a list of all the features that you desire in your ideal neighborhood. In your perfect neighborhood, how far are the houses spaced from each other? Do you want to live in a suburban or rural area? What age are the houses in your ideal development? Come up with your own questions to ask yourself in order to determine which type of neighborhood is right for you.
Why Is the House Considered the Worst in the Neighborhood?
It’s worth mentioning flat-out that some houses are utterly beyond repair. Even if the house isn’t built on top of an Indian burial ground, certain conditions may make a house unlivable no matter how much love you pour into it. Structural issues in the foundation, for instance, can make it simply impossible to turn a beat-up dwelling into the house of your dreams. Take the surroundings of the house into account as well; if a home is squished between a 7/11 and a waste processing plant and hasn’t been renovated since 1895, it be best to simply move on.
But if the house is set in pleasant surroundings and simply needs some love and attention, this can be the perfect project as long as you have the will, time, and resources to get it done. Just because a house is old doesn’t mean it’s beyond repair, and seemingly unfixable issues like a caved in roof can be surprisingly easy to mend. And while to one potential owner a house may be beyond hope, to another, it’s just another challenge to overcome. No matter what the situation, it pays to accurately take stock of both the surroundings and condition of the house before making a decision.
What Is the True Cost of the Home?
While a truly beat-up house may come with an appealingly low price tag, that’s not what you’ll actually be paying for the house no matter how good you are at haggling. Before picking up a fixer-upper, you’ll need to factor in all the costs of repairs. There’s
nothing worse than getting halfway through renovating the house of your dreams and suddenly realizing that you don’t have the funding to pull it off. And no matter how much of a whiz you are at estimations, there will always be something in need of repair that you overlooked. Veteran house flippers always allow for an extra 15% over the estimated repair costs just to be safe, so keep in mind, those additional expenses typically can’t just be put on the credit card.
The Importance of Bidding Low
Owners of broken-down homes are often anxious to get the property off their hands. While they might put up a good front, the allure of no longer having to deal with their unwanted property can be a huge draw for deed-holders that are simply fed up with having to deal with a home that appears to be useless. Even if you have huge dreams for the house, don’t let your eagerness get ahead of you and make sure to start off the negotiations by bidding low on the property. Chances are, the owner will accept your first bid just for the pleasure of washing their hands of the situation.
Why It Pays to Take Your Time
When selecting the right fixer-upper, make sure not to rush into things. Take accurate stock of all the factors listed above and make sure to thoroughly inspect the home to ensure that you have an accurate idea of all the repairs that are entailed. When the time is right to make an offer, you’ll know.
Above all, make sure that you enjoy the process of searching for the home of your dreams. Over the course of your quest, you’ll meet some interesting people and go places that you would never normally venture. Make the best out of your journey and make sure to have some fun while searching for the worst home in the best neighborhood.
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Guest Post Author Bio
Dakota it the editor at DealMeisters.com in addition to being published on a wide ranging spectrum of respected sites. His writing inspirations are drawn from the areas of saving, goal setting, the latest technology and beyond.
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