Now that the Denver real estate market is leveling out, or at least seems to be, I've had a bunch of people ask to start looking at houses - mainly fix-up properties. They have different intentions for the properties - they want to find a great deal and fix it up for their family to live in - they want to find an absolutely killer deal, fix it up and sell it - they want to find a rock-bottom mess and fix it up to hold and rent - whatever the reason, there is a lot of inventory to look at, and great deals to be had if they play their cards right.So, where do I tell them to start?
1. Get pre-qualified with a really good lender. Let me know if you want some recommendations, and make sure that you feel totally comfortable with them, because they are going to end up on your speed dial and you will talk to them more than you talk to your BFF as soon as you go Under Contract.
2. Tell me what you think you are looking for. I will sign you up for a super-smart email property search that emails you new listings every day, so you can take a little tour while enjoying your morning coffee, and if you see anything that you think might work for you, add it to your Favorites folder and let me know so that we can go take a look. DO NOT WAIT. Sure, some properties will be on the market for months - but the really good deals go super fast, and it's a shame to miss out on them because you don't want to bother me. BOTHER ME!! That's my job, and it's why I have an awesome team - one of us is always available to show you a property that might be THE ONE. Text me/call me/email me -- I am always happy to hear from you!
3. Get out there and open some doors. I will take your list and I will add a few that I know might work, and we will go out and have a good time while looking at many different levels of Fix-Up. And yes, there are many levels, believe me. I love looking at houses, and most of my clients end up loving it, too. Some of them love it so much they start looking into Real Estate courses ;) Try to picture what each property COULD look like - some of them are in really bad shape but just need a little bit of clean-up and love - and sometimes those are the best deals of all.
4. When you think you have found THE ONE, I recommend that you spend some time in the house with a notebook and calculator. With any fix-up, there are projects to be done. Some homes just need new lipstick (floors, paint, and appliances) while some need botox (tile, bathroom fixtures, kitchen cabinets) and others need some serious surgery (floorplan changes, additions, complete demo including plumbing, electric, and roof). So it's really important, before you get too excited and fall in love with a property, that you get a firm grip on what the renovation costs will likely be -- then add 20% -- because it always costs more than you think it will. Go to Home Depot or Lowe's and price out everything -- down to the nails, nuts, and bolts you are going to need. Can you afford it?
5. Write an offer. Nothing sucks more than getting your heart set on a property and then having someone beat you to the table. This is when your pre-qualification and organization is going to come in super handy. If you have a lender letter and earnest money, your offer is going to be stronger and you will have more power to negotiate if the seller can be sure that you can actually qualify for your loan.Once your offer is accepted, that is when the real fun begins. I love a good fix-up!
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