If you’re buying a fixer upper, whether you plan to live on the property or flip it, there are plenty of things that you’ll need to consider. So you can budget appropriately, below, many of the costs and fees are laid to so that you can see what you’ll need to budget for when rehabilitating a home.

The Overall Costs

The costs that you’ll incur in buying and finishing a home that needs to be rehabilitated are as follows:

• The team needed for rehabilitation
• The purchase price of the property
• The cost of owning the property
• The cost of selling the property (if you plan on flipping the home)

The Team

The people that you put together to rehab your home will be very important to the entire rehabilitation process. You should take the time to research each person that you’re hiring to be sure that they are a good fit for the job.

Professionals who will be involved in the process include:

• Lender
• Attorney
• Realtor
• Contractor 
• Insurance agent
• Home inspector

You can ask your realtor or other trusted contacts for recommendations. Putting a team in place helps to make the entire, sometimes cumbersome process of house rehabilitation a bit smoother. 

Buying The Property

These costs are pretty standard as if you were buying any other home. You’ll need to pay closing costs, attorneys fees, realtor fees, and more. Costs typically included in a home purchase are:

• Inspection
• Purchase price
• Closing costs
• Appraisal

You should budget for all of these typical home buying costs when buying a rehab home. 

The Costs Of Home Rehabilitation

This is where things get expensive. You’ll need to first pay a contractor just to consult with them to see how they will create your vision for the property. You could also take another route an consult with a home inspector who has experience in construction. They can give you an idea of what the construction expense will be and what needs to be addressed. 

When you do get to meet with contractors, you’ll want to understand their construction experience and feel comfortable that they can produce the work that you need at a high level of quality.  

Owning A Home

Once you have the home in need of rehabilitation in your possession, you’ll need to pay the typical costs of any homeowner. These include:

• Mortgage payments
• Taxes
• Insurance
• Utilities
• Maintenance

Even if you’re not currently occupying the home, once the property is purchased, all of these costs will need to be covered and considered. 

If you decide to flip the property and sell it, you’ll need to consider additional costs including realtor’s fees and other closing costs.  

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Everybody loves a house with a great curb appeal. People pass by and say to themselves, “that house looks like I could buy it.” The greater the curb appeal of your house, the more buyers will be willing to pay for it if you decide to let it go. If you are willing to create a great first impression on anyone who comes visiting your home, you may try implementing any of these ideas to increase your curb appeal.

1. Paint the front door and improve the exterior. Every visitor sees your front door so invest in a good coat of paint. Look for a bold and eye-catching color that makes the rest of the house stand out, but be careful not to mix clashing colors. Replace the bad mailbox, old number plates, and doorbell, and fix the sagging ceiling too.
2. Clean your front windows and gutters. Clean up the windows and window blinds. Add extra lighting to make that view pop up. Rake up dead leaves and grass from the gutter. Remove vegetation that springs up in between the walkway.
3. Install lighting outside. Add low voltage lighting everywhere around your home – the front porch, sidewalks and even on the driveway. This makes it look really great at night. It also serves as security lighting for you. If you can afford it, add a street lamp outside your home.
4. Get rid of junk. Old furniture, bad vehicles, unruly garbage bins, and clutter around the front yard – all these add up to reduce the curb appeal of your home. Get rid of all the unsightly things that might distract from the image you are trying to create.
5. Do some landscaping. Mow your overgrown lawn and plant flowers and shrubs. Get rid of weeds and fallen leaves. If you have space, you could plant two trees to frame the side of the house, otherwise stick to a garden and potted plants.
6. Add outdoor artwork. For a classier and more sophisticated outlook, add external artwork like sculpture, marble or terracotta. Water sculptures and fountains are also a great choice, add some birdhouses and feeders to the mix, and you have got a great sight. You could also install wall art on your garage doors to give it an extra touch. Not sure of what kind of art to get, ask art students at any local art college near you, you might probably pick up a bargain.

Once you clean up your existing yard, talk to your real estate professional about the best look for the season.

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