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You Bought a Fixer-Upper. Now What?

If you’re a fan of HGTV’s “Fixer Upper,” there’s a good chance you’ve caught yourself dreaming about how you might customize an outdated house bought at a rock-bottom price.

You don’t have to be a home improvement TV show junkie to be intrigued by houses on the market that aren’t exactly move-in ready. Especially if it means saving on the purchase price of a house, many homebuyers are inclined to take on renovations and updates to get the keys to a new home.

In a February survey of 1,000 consumers considering purchasing a home in 2017, online brokerage Owners.com found 51 percent of the homebuyers surveyed would consider a fixer-upper.

But if you don’t have an eye for home improvement and what it costs — and Chip and Joanna Gaines aren’t walking you through the process — you might find yourself lost once you’re the owner of a house with ’70s wallpaper and holes in the stairs.

[See: 8 Easy Renovation Projects Every Homeowner Can Do Now.]

Here are nine things to do once you’ve purchased your fixer-upper.

Close first, then go in-depth with contractors. Home improvement shows like “Fixer Upper” and “Property Brothers” often depict homebuyers touring potential buys with the real estate agent-contractor team, but that’s not usually the case in real life.

Most design-and-build firms or construction companies work separately from real estate agents and will want to put in the work with existing homeowners, rather than those who haven’t yet bought a property.

Take other guesses at face value. You probably don’t know how much every update you want to make is going to cost as you close, but don’t take guesses during the homebuying process as accurate.

Zak Fleming, owner of Fleming Construction in the Des Moines, Iowa, area, says real estate agents typically quote home improvement costs far below what the buyer will actually pay for renovations.

“They get paid on selling the house, not renovating it. So usually, the real estate agent’s estimated numbers will be very, very low in my experience,” Fleming says.

Find the right contractor for your project. Once you’ve bought the home, it’s a matter of finding the right contractor — or contractors, depending on how you want to do the repairs and renovation. As with hiring any professional, you should do your research.

“You want to check referrals,” says Dina Dwyer-Owens, co-chairwoman of Dwyer Group, a family of companies that includes Neighborly, which works with home service franchises throughout the U.S. and Canada, including Molly Maid, Mr. Rooter and Rainbow International Restoration. Neighborly provides local reviews and contact information for businesses, but it also vets each of the franchises it associates with.

Call in advance. Whether you’re doing a couple rooms or the entire house, a renovation is a big project, so get in touch with contractors well in advance of when you’d like to begin work.

“Planning is the biggest key. … The sooner you get ahold of that service provider to begin that process, the better,” Dwyer-Owens says.

[See: 8 Ways to Transform Unused Space in Your Home.]

Don’t ask for estimates — you set the budget. There are a lot of logistical differences between a water heater replacement and a kitchen upgrade, but a key difference is the way costs are determined. You’ll get quotes from a company to replace a water heater. With a kitchen overhaul, you tell the contractor what you want to spend.

Outline the desired budget and what you’d like updated, and the company will provide you with a plan for the project time frame, hardware that can be incorporated within the budget and expected subcontractor involvement, plus the expected overall cost depending on your preferences.

For companies with a good reputation, Fleming says you won’t see much of a difference: “The pricing should all be right around the same for the same scope of work.”

Decide if you want to do it all at once or in parts. A big factor in determining the budget — and what you may have to spend on the side — is how much work you want done at once. Some homeowners can afford to remain in their previous home or rent elsewhere while the entire house undergoes a remodel, while for many, a gradual renovation makes it possible to stay put while work is done.

“They can kind of move from room to room and try to live in their house the best they can,” Fleming says. “It’s a very invasive process either way, but it’s a little more manageable.”

Consider how you use the home before you picking out features. Many construction firms that specialize in renovations — from demolition to interior design — ultimately want to meet your needs living in the home. So before you tell your contractor you’re dreaming of a tempered-glass, floating vessel sink in your master bathroom, first describe if you use the sink simply to wash your hands or if it’s an integral part of your morning routine with needed counter space for toothbrushes, facewash or makeup.

“We’ll definitely make it pretty, but we’re more interested in, ‘I want to have seating for 12 for Thanksgiving dinner,’ ‘I like to cook for my kid’s track team,’ stuff like that,” Fleming says.

Consider your return on investment. When it comes to a fixer-upper, some buyers hope to make it the home they’ll live in for the next 40 years. For others, it’s a house to transform and, in a few years, sell for a sizable profit.

But you want to keep your home in line with others in the neighborhood. If you transform it into the best house on the block by a mile, when you put the For Sale sign out front, you may not see as much money come back as you spent on the home plus updates.

“If you’re completely doing an overhaul and updating absolutely everything, you’re still only capturing half the market because now you’re probably out of the affordable price range of people who might have bought it for what it was,” says Scott McGillivray, host of the HGTV show “Income Property,” who partners with Owners.com.

[See: 11 Popular Home Updates That Are Worth the Cost.]

When work starts, take a step back. You might think you’re keeping a sharp eye on your investment by hanging around the worksite daily, but no one likes a micromanager.

Especially when you’re working with a contractor who manages the project from start to finish — subcontractors included — don’t waste your time inquiring about construction details you don’t need to be concerned with. If there’s a problem or an update, a good contractor will notify you immediately.

“Let them take the wheel — you hired them to do that,” Fleming says.

More from U.S. News

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10 Ways to Save Energy and Reduce Utility Bills at Home

Weird Home Features That May Confuse Homebuyers

You Bought a Fixer-Upper. Now What? originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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