Taking your first look at a fixer upper

If you are taking your first look at a house that needs fixing you might be asking yourself, “Where do I start?”  The simple answer is figure  how much will it cost to fix.  However, that might take hours of inspection and estimating.  A cost to fix approach also ignores some other important questions.  You must also consider, ” How much will it cost to own this house?”  and “What will it be worth when it’s repaired?”   I try and simplify these first looks so I don’t get too bogged down in small details.     There is no sense focusing on small details if the house will be a money pit for years to come or the APR (after repaired value) is going to be too low.  You  need to remember this is a only first look.   Detailed estimates, sworn construction statements, appraisals, inspections, etc.  all come later in the buying process.

I first focus on few serveral major ‘systems’ that every house has.   I’ll write down a few notes about each of these systems and later I’ll go back and plug in some rough numbers.    I try to focus on not just the fix up costs but also how much will it cost to own this property and when it’s fixed what will it be worth (ARV).

Here is a simple list I use:

1.) Landscape, including every thing on the grounds including sidewalks and  driveways.

2.) Exterior systems which breaks down into three important areas.

• Roof
• Siding and Trim
• Windows and exterior doors

3.) Mechanical systems,

• HVAC
• Plumbing
• Electrical

4.) Interior finishes

• Walls and ceilings
• Flooring
• Interior trim

5.) Kit and Bath-

• Kitchen
• Bath 1
• Bath 2

6.) Garage

7.) Decks and Appertanent sturctures

Each item might have an immeadiate fix up cost, but  these systems might also have costs that will be defered.  For example an older roof or furnace might be fine today, they might need to be replaced within 5-7 years.  You need to take note of this.

If you don’t have experience in certain areas, all this might seem a little overwhelming.   That’s okay stay focused on the bigger picture and delegate.  It’s  more important to know where you can find answers.   Fill in as much as you can and use your team of experts to help you fill in enough  information to see if this property is worth owning.   It really takes a team approach to be successful.