Ulster County Fixer Upper Properties
No matter what you do to your Ulster County home to improve it, it does not necessarily mean that you will add value to it because the value has to be there in the eye of the buyer if you are to make money from it. However, more and more people are looking to purchase homes that they can fix up themselves. The whole process of fixing up a home can be incredibly romantic but there are certain facts that should be distinguished from myths before you even entertain the idea. If you are not aware of them then the likelihood is that you will end up with a long and hard road to travel before reaching dream home central.
Five Common Myths
- The first myth you should be aware of is that you can make a lot of money in real estate by fixing up a home and then selling it for its full market value. In fact, this is not necessarily true because the home has to be listed at a price that reflects the working costs, meaning that you can include fixtures that you have added at their minimum value but not the higher end finishes that some fixer uppers go for. As such, you may make a small profit but may not make the killing you would imagine if you put it up for sale immediately.
- The second myth associated with fixer upper homes is that a home inspection is not necessary because of the nature of the property. This is frankly ridiculous because whatever home you ultimately invest in you should have inspected by a qualified professional. It should be included in the offer that you initially put in because there may be significant structural defects that you cannot spot. If you forego the home inspection then you will not be able to tackle the seller about them.
- The third myth that you may want to know relates to where to buy a fixer upper. The myth suggests that it is better to buy one in a poorer area than a desirable neighborhood but of course that is ridiculous because the location is everything. You may have to pay more to fix up a home in a desirable area but the benefits are significant because you will get a much higher return on your investment and it will likely sell quicker.
- The fourth myth relates to the return you will get on your property and is related to the first myth. Anyone saying or believing that they will get double the price after fixing up the house is delusional because that simply does not happen. You will get what a buyer is prepared to pay for it and not a penny more. As previously stated, the neighborhood makes a difference, as do the surrounding homes and features so you have to seriously consider where to invest in a fixer upper and make sure that you are realistic in trying to maximize your profit.
- Finally, the fifth myth that you should be aware of is that stating you can make more money by converting a home for a single family into multiple abodes. This is sometimes true but may actually be illegal depending on the zoning laws in a given area. Maximum occupancy levels are often enforced and thus will dictate exactly what you are able to do with property. You will need to double check this in advance because falling foul of the law could cost you far more than you bargain on.
Tips for Ulster County Home Buyers
If at any time you have questions about buying real estate in Ulster County or the surrounding area, please don’t hesitate to contact Dylan Taft, Principal Broker/Owner, Taft Street Realty, Inc. - 845.687.9292 office or 845.380.3394 mobile.