When you’re shopping for a new home, you probably want the property to be as “move in ready” as possible. That way, you can... well... just move in!
However, there are a lot of fantastic properties on the market that need some work. For example, you might see a home that has everything you need, but the kitchen is long overdue for a renovation. Or, you might view a property that requires a lot of repairs and painting — tasks that, at first glance, seem overwhelming.
You don’t want to just pass on a property that might be a great buy. On the other hand, you don’t want to purchase a home, only to end up with more renovations, repairs and expenses than you anticipated.
What’s the solution? Here’s an idea.
When you view a home that needs work, make a note of exactly what needs to be done. Stick to the important “must have” improvements and leave “nice to have” improvements for a later time. Chances are, you’ll identify just one or two projects — such as “paint all the walls” or “replace the countertops in the kitchen”.
Once you have that list, you’ll be in a better position to determine how long the work will likely take and the approximate cost. This will give you some needed perspective on whether or not to buy the home.
If a home you’re considering needs $15,000 in work that can probably be completed within two months, that might make the property worth buying. In fact, it probably would!
So, when you see an otherwise ideal home that needs some work, don’t let your imagination make that work into more than it is. Take notes and get estimates.
When preparing your home for sale, you need to fix things up, declutter, perhaps slap a fresh coat of paint on a few walls. That’s all part of getting your property ready for buyers.
But there’s another type of preparation that you also need to do. And, the sooner you do it, the less stressful your move will be.
You need to get all your paperwork together.
Here’s what to gather:
- Property documents such as deeds, easements, surveys, liens, etc.
- Mortgage documents, plus any other loans (i.e., line of credit) that use the property as collateral.
- Maintenance and service agreements that may continue with the new owners.
- Warranties and guarantees that are transferrable to the new owners.
- Recent utility bills, such as water, electricity, etc.
- Rentals (i.e., water heater rental.)
- Home security agreements and codes.
- Contracts for any work done on an ongoing basis. For example,
lawn maintenance.
Getting these records together early will ensure you’re not scrambling at the last minute to find them. Some of these documents, such as warranties, also make for attractive selling features.