This is part two of our blog series on the real facts (and myths) involved in purchasing fixer-upper homes. It’s important to do your research and prepare for these types of purchases.
Myth: once the house is renovated and ‘fixed up’, I can turn around and sell it for double what I paid.
Fact: a home will always only sell for what the market will sustain. What this means is that no matter how many upgrades were made, or how much money has been invested in the upgrades, a home will only sell for what the majority of homebuyers are willing to pay. Factors to consider when calculating your possible return on investment: location, neighbours and surroundings.
Myth: I can make more money by turning a single-family home into a multi-family dwelling.
Fact: while sometimes this can be true, it’s not always a possible option. Most cities have strict zoning laws in regards to that type of housing.
Once you’ve taken into the pros and cons of purchasing a fixer-upper home, always talk numbers and figure out the costs associated with the purchase.
Have questions about this? Feel free to contact us anytime.
