We’ve all seen some variation of a My Fair Lady story, and this well-known trope has all the fixings for fixer uppers in Minnesota. All it needs is a project that’s a bit rough around the edges, somebody willing to improve it, a lot of time and patience, and a big reveal. Put them all together, and you’ll start to get a taste of buying fixer uppers in MN. However, before you take the ambitious leap that is setting your sights on fixer uppers in Minnesota yourself, we recommend assessing the undertaking and asking yourself some important questions.
What do you want out of your fixer upper in Minnesota?
When you binge-watch home improvement shows (we’re not judging, we do it too!), do you dream of designing your ideal home? Or do you crave the thrill of taking something shabby and turning into a functional, quality final product? Going into a fixer upper in Minnesota can be an entirely different experience depending on if you are buying to establish your own living space or create a marketable masterpiece that needs to appeal to immediate buyers.
Buyer Tip– Make sure to hold onto all your receipts. These can serve to justify potential tax breaks on the future finished home, because you’re upgrading in the property to achieve an increase in value, which falls under the definition of Capital improvements. These will also be taken into account as a portion of the updated tax basis of your house.
Is your fixer upper compatible with your vision?
It can feel like the sky’s the limit when you buy a property, because we’ve all been told that the beginning of any promising DIY construction is starting with a sturdy foundation and good bones. However, it’s not realistic to buy a 2-bed, 1 bath home on a tiny lot and expect to see a 5-bed, 4-bath house at the finish line.
Can you fund a Minnesota fixer upper from start to finish?
While buying an inexpensive home can be tempting, the home is likely to be priced so low for a reason. It may only need a few cosmetic fixes, which are usually less pricey, and can be completed quickly and easily while having a massive impact on the home’s appeal. But, your fixer upper might also have major issues and require all-new plumbing, wiring, and even a roof just to get up to code. Unless you’re lucky enough to already have the skills needed, then you will also need to shell out for professionals, whose fees can add up incredibly quickly.
Buyer Tip– bring in an inspector, who can help you anticipate these costs up front, and help you obtain the closest possible estimate of your overall home repair expenses. Plus, if you find major issues, it’s worth revisiting the price of the property with the sellers to try to land a lower price.
How do you handle stress and setbacks?
If you’re exploring buying fixer uppers in Minnesota in order to find your next personal home, you likely have a deadline for when the house itself needs to be livable. However, setbacks like weather, coordinating work schedules, and unpleasant surprises like code violations or a rogue supporting beam can throw off your plans in a big way. If you’re planning to flip a MN fixer upper, then you’re already financially invested, and won’t see your payday until the completed home has secured a buyer and closed. If a completion date keeps moving further and further out, the accompanying stress and anxiety can be significant.
Time for the hardest question: Is it even worth fixing up at all?
Some homes are in a state of far too much disrepair to be fixed up into anything in which you would even want to live yourself. Part of buying a fixer upper in Minnesota is the excitement of taking a house that’s a 3 and turning it into an 8, or transforming a 2 into a 9. However, there is very little satisfaction or payoff for all your hard work in taking a 1 and maybe dragging it up to a 4. If you can’t imagine the property as a decent home, it’s probably time to trust your gut and look at other options.
For more information on fixer uppers in Minnesota, whether or not you should buy your own, and alternatives if you decide against one, call our experts at The Antonov Group today.