When you’re looking for a bargain while buying a home, a foreclosure seems like a dream come true. We all know that such homes are typically listed at a price far low than their original worth, but a set of challenges await you too. If you are not a professional real estate investor, you need proper guidance in fixing a foreclosed home.
There are high chances that the foreclosure property is not according to your taste and a large sum of money is required to upgrade it to a likable version of itself. You might be unaware of the fact that a considerable percentage of such homes come with so much damage that it is impossible to live in them without remodeling.
Renovation is never easy and comes with a lot of urgent fixtures. Let us help you with some tips to renovate a foreclosed home without exhausting all your life savings.
Start with Devising a Budget
It is believed that the renovation budget should be 5% of the purchase price of the property. But, it is the scale of the renovation that determines how much you should spend. As you have already saved a significant chunk of money in buying a foreclosure property, you can use it to make the property livable for yourself and your family.
A good idea is to break-up each aspect of the renovation and allocate required funds to it. The areas which require immediate attention should be given a larger share in the renovation budget. Never forget that renovation always costs more than your initial estimate, so keep some extra cash aside for unexpected expenses.
Once you start looking for ideas, it is easy to get carried away with the fantastic options available and forget that we don’t have a celebrity budget. While you may be inspired by some jaw-dropping home renovations you find online, know that not all of them are realistic. Some of them require so much effort and money that you might not be able to go beyond fixing a single corner of the house.
Keep your expectations in line with your budget and do not indulge in extravagant purchases as that will blow your entire intent of buying a foreclosed home. A good contractor can help you in determining if your budget is realistic or not. There should be a fine balance between aesthetically appealing and pocket-friendly purchases so that the result is superior within the given budget.
The biggest way to save money during renovation is to reuse the materials which are in a reasonable condition. For example, as you give a new look to your kitchen, you may go with changing just the doors and keeping the original cabinetry intact. You can even reface these materials with minor tweaking like paint.
If it is impossible to reuse any of the preexisting space, you can buy the fixtures or materials from Habitat for Humanity ReStores or salvage yards. There are plenty of buying and trading websites too! Also, you must look for people who are moving and ready to sell their hardly used appliances at reasonable rates.
Look for Sales for Big Purchases
There are certain times of the year when making big purchases can be quite affordable, for example, the Black Friday sale for electronics. By making yourself wait a little bit and keeping a keen eye on discounts, yard sales, and thrift stores, you can get really good sales. Before you make a purchase, research the best time to do so.
It is difficult to wait before you can finally start giving your house the look that you want. However, being impatient will not take you anywhere. Instead of buying the big items at full prices, one must look for the offers which can help in saving a significant amount of money. Even the real estate agents in GA or other cities can help in finding the best deals.
Create a Balance between High and Low End Items
First of all, you need to set your priorities right. Sort the things which require you to spend more from the ones where you can compromise. You can spend more on statement items like quartz countertops and high-end stoves, but curb the funds in other areas which you feel will not suffer because of low-quality items.
It is a tricky business to figure out this balance, which depends greatly on the style and inclinations of the project. Before you make certain choices, remember that you are not going for extremes but a balance. Make the right decision and style your home without going overboard with expenses.
Stay Organized and Don’t Waste Time
After you’ve outlined the budget and set your priorities straight, you need to follow a strict timeline to complete the renovation on time. If you procrastinate and waste your time, you are not only losing money but also compromising on better results. When you have taken time to carefully enlist everything, you’ll face fewer glitches during the process.
To make a smooth flow of work, one can itemize the chores on a spreadsheet by allotting them certain time frames. When you are on schedule, you make fewer mistakes and can avoid the possible issues while continuing with work. The sooner you are done with renovating the house, the better it is for your bank account and peace of mind.
If you happen to encounter any of the reputable real estate agents in GA or any other state, they will not only help you find a good foreclosure but also get you in contact with a good contractor. Renovating will let you improve the look and functionality of a foreclosed home and increase its value.
For large renovations, get a quote from multiple contractors and work with the one who can satisfy your needs within the given budget. However, try to complete the small tasks yourself. This will not only make you feel connected to your house but also help in staying on budget.