A Few Helpful Tips when Buying a Charlotte NC “Fixer-upper”

Successful investors thoroughly research the market they are looking to buy in or they work with an experienced Charlotte Realtor® and neighborhood expert, who will be able to determine the potential market value of the property after repairs and/or renovations.

A “fixer-upper” can also be a great opportunity for first-time home buyers, especially if they’re planning to live in the property while they’re working on it and can actually do the work themselves. 

In most cases, if the buyer lives in the house for a minimum of two years, they can avoid paying income taxes on their profits, maximizing their investment.

Stay within Budget

Buyers need to stay within budget or they will never see a return when it comes time to sell their Charlotte NC “fixer-upper.”  The highest returns on most “fixer-uppers” come from bathroom and kitchen updates.

It might be more prudent for a first-time home buyer to purchase a “fixer-upper” that needs only cosmetic repairs rather than getting involved in a major remodeling project. 

Items such as peeling paint, worn carpet, a sagging ceiling, exterior curb appeal and landscaping should be the first improvements made because they provide immediate impact.

Get a Home Inspection

A home inspection is a crucial first step before buyers choose what Charlotte NC property to buy and before they get locked into a purchase price.  Without an inspection, a buyer has no real way of knowing the full extent of what needs to be fixed.

A professional home inspector or contractor (better to have both) knows what to look for such as signs of water damage, pests, structural problems, etc. and will be well worth the money in the long run.

Don’t Overpay on the Price

When purchasing a Charlotte NC “fixer-upper,” buyers need to be careful they don’t pay too much for the property out of the gate.  Buyers must also know the budget for improvement and selling costs so they can determine how much profit will be made on the sale after repairs.

If too much of a buyer’s housing budget is spent on the initial purchase price, it may take months or even years before they’re financially solvent enough to make needed repairs or renovations.  Buyers can get a rough estimate of the repair costs of a particular property with this handy home renovation cost calculator.

HUD’s 203(K) Rehab a Home Program

There is a ‘catch 22′ when looking to finance a “fixer-upper” because most banks won’t make the loan until the repairs are done on the house, which can’t be done until the house is purchased. 

However, if a buyer is planning on occupying the home, HUD’s 203(k) Program may be the answer. Under HUD’s 203(k) Program, the buyer is allowed to purchase the property plus include in the loan the cost of repairs and improvements. 

• A FHA insured 203(k) loan can be obtained through approved mortgage lenders nationwide. 
• The down payment requirement for an owner-occupant property is approximately 3% of the acquisition and repair costs of the property. 
• Interest rates and discount points on the loan are negotiable between the borrower and the lender.  

For more information about HUD’s 203(K) Rehab a Home Program, visit HUD’s website.   For a list of approved lenders, visit HUD’s 203(k) Lenders List page. 

Charlotte NC Real Estate Investments - Homes For Sale

Realtor®, Leigh Brown, is a leader in the Charlotte real estate market.  She will help you find the right Charlotte investment property for sale and assist you in all phases of the home buying process. 

Whether you’re a seasoned real estate investor or first-time buyer you can be assured that you’re getting the best possible price with the greatest possible return on your investment!

You can reach Leigh Brown by filling out her online contact form or give her a call at (704) 688-5005 or toll free at (866) 440-7136.

Leigh knows Charlotte.  Let her do the work for you!