Buying a Fixer Upper Home on Lake Granbury

Buying a Fixer Upper Home on Lake GranburyGranbury is a beautiful city with several popular lake properties. Waterfront homes have a higher market value and a higher price tag. If you are hoping to find a lake home at a lesser price point you may have considered a home that needs some extra attention, a fixer-upper.  But before you go house hunting and make a large commitment to a huge purchase there are some things you want to consider before purchasing a lake home that needs some work.

Look at the Bones

When taking a tour of a home that needs work it can easily make you want to run in the other direction. Especially, if the home is communicated to be sold as-is. This usually means there is some extensive work to be done. When going into a fixer-upper, you have to keep your focus on the structural integrity of a home. Are the fixes major structural overhauls or merely cosmetic? 

A home that may be ugly might actually be in pretty good condition when considering the safety and livability of the home. When looking at work that needs to be done ask yourself if it is a cosmetic fix, something that is ugly and needs a facelift, or a structural one, something that needs a major overhaul. 

Know Your Finances

With any purchase of a home, a Granbury homebuyer should know the details of their personal finances and what type of loan they would qualify for. This will help to save you from looking at a home that you can't afford or can't get approval on a loan. Finding a home that needs work will require some extra steps in qualifying for a loan. This is because when a lender approves a loan they want to ensure that the borrower is more than capable of paying that money back. When you purchase a home that needs work this means you will likely be using extra money or money from a specialized loan to fix up the home. a lender wants to make sure they are not taking a huge risk. And a borrower should make sure they are not over-extending themselves even if they do get approved for a loan. Homebuyers should make plans to only spend about 30% or less of their income on housing. Additionally, a fixer-upper is always going to need some extra money beyond estimates to account for very common construction surprises. 

Consult a Pro

When you are looking at homes that need some work, it is a good idea to have a contractor come along to help you determine if the home truly is a good purchase and worth making an offer on. A contractor can give more detailed insight into what it would take to turn a home from what it is to what you need and want it to be. 

They can even give you insight into a home that might not have the floorplan or footprint you are looking for but has the potential to build/ add on extra space and make a home you would never consider into your custom Lake Granbury dream home that you never want to leave. 

A contractor will also be the best person to give you the closest and most accurate estimate on the timeline and cost of the work. There will always be hidden surprises and they can also give you an estimate of setting aside extra money to help cover those. There is just so much insight to gather from someone who makes over homes on a daily basis. There is no foolproof way to assess what a fixer home needs but this is your closest strategy. 

Ask About the Home's Potential

This may seem like a repetitive subject after reading about bringing a contractor along. But we are talking more about the potential return on investment (ROI). How much the home could potentially be worth once the work is done and how it compares to the estimated amount of money you would need to spend to get the home where you want it. 

It is a common mistake of inexperienced home buyers to purchase a fixer home and pour a ton of money into it to get it just perfect for their preference and to have invested much more money than the increase in value for their home. In other words, they spend more money on the upgrades than the amount of fair market value the home increases from the price they bought it to the value it is after being fixed. This essentially means the homeowner is underwater. 

Get the Right Help

Finally, the best way to find a promising fixer home on or near Lake Granbury is to work with a real estate agent who specializes in lake homes. A lake home is not the same as a traditional landlocked home. Lake homes have special considerations to take and special zoning laws to consider. (another thing to pay attention to when making construction plans).

You want to hire a real estate pro who will work on your behalf and actually know what to look for. You don't want to pay a crazy price just because the home is on the lake. A realtor with extensive lake real estate knowledge and experience will know how much a property is worth and if a home will be a great fit for what their client is specifically looking for. 

If you are looking for a home near Lake Granbury I am here to help. We have extensive experience in Granbury waterfront properties. Contact me any time with any Granbury real estate needs. 

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