Dream Team

There are plenty of good reasons why you might want to buy a house in a different state from your current location — and thankfully, modern technology makes it possible to shop for a home and work hand-in-hand with trusted professionals who can make the process easier for you. Whether you’re going to be living in the house full-time and want to have the purchase handled before you move, you’d like to find a vacation home in one of your favorite places to visit, or you are hoping to invest your money in real estate somewhere you don’t actually live, you’re not alone!

Plenty of people are buying homes from across the country these days, and you can make it work for you if you understand what’s involved and make sure you’re working with people you trust to help you make big decisions. To be successful in your remote purchase, make sure you’re covering these basics.

Know why you want to buy remotely

It’s absolutely fine to have more than one reason for buying a home in a different state — for example, perhaps you want a vacation home that you can also rent out short-term when you’re not staying there to help cover the mortgage, so you’re looking for both a second home and an investment property. But you need to think long and hard about your primary reason for buying a house in a state where you don’t currently live full-time well before you start shopping because your primary reason should help you determine what will (and won’t) work for you.

If you’re planning on moving to the home full-time soon or eventually, then your needs are going to be very different than if you only plan on visiting the house once a year for vacation. You might want more square footage in a house that’s going to be your full-time residence than in a house you’re only staying in for a week or two every year, and you’ll want to make sure there’s plenty of room and storage space for all the belongings you want to keep. It might not matter so much if a vacation home or a short-term rental doesn’t have great internet access — the whole idea is to get away from the world, after all — but a lack of connectivity could be a big problem for a full-time residence or even long-term rental.

Consider how much time you plan on spending at your new home if any, and work on your list of must-haves and nice-to-haves from there. This will be useful when you start actually looking at properties to buy: You’ll be able to easily eliminate homes that don’t meet all the criteria on your must-have list, and you can prioritize which homes you like best based on how well they meet your nice-to-have criteria.

Research, research, research

You might have a general idea of where you want to buy a house — maybe you’ve always wanted to own a home in the mountains, on the beach, or in your favorite city to visit. But you’ll need to get much more specific than that before you start seriously looking for a house and start the purchasing process. What metro area or rural area will you be considering for your out-of-state home? How well do you know that area and its neighborhoods or small towns? If you want to buy remotely in a place where you used to live, or somewhere you’ve visited regularly for years, you’ll be in a decent position to make some decisions, but if you’re not very familiar (or at all familiar) with the areas where you want to shop, then you’re going to have to start doing some heavy research into the specific locations that will work best for you.

Investors who want to buy a long-term rental and rent it out are going to want to consider not only crime rates and home appreciation in the possible neighborhoods and metros for buying a house, but also school ratings and commute times so they can attract the widest possible pool of well-qualified renters to their property. Vacation-home and short-term-rental buyers are also going to want to think seriously about crime rates; homes that sit vacant for some or most of the year are prime targets for burglary and vandalism, which is not something you want to deal with remotely. And of course, if you’re going to be living in the house and working in the area, you’ll want to know how close you are to work and how convenient (or inconvenient) it will be to shop for groceries, among other factors.

Spend some time reading local publications (if they exist) and digging into the information available online about the general areas where you might want to buy. Keep in mind, though, that the internet isn’t going to be able to tell you everything: You’re going to want to talk to some actual humans about what you’re learning at some point …

Get some resident opinions

Do you know anybody who lives in the area where you want to buy? This can be a huge asset when you’re trying to purchase a home in a different state. And the good news is that you don’t necessarily have to know someone in the area already; you can craft relationships from out-of-state with knowledgeable people and ask them every lingering question you have about your future home purchase.

Get onto Facebook and see if the region or neighborhood has a group created, then join it. You might want to lurk for a little bit to make sure it’s the kind of environment where people will welcome (and answer) your questions, but this can be a good place to start. If there isn’t a Facebook group, try to find property managers, general contractors — even landscapers and house-cleaners can be great resources for giving you details on which streets tend to be more dangerous than others, what you’ll want to keep an eye out for in terms of potential structural problems or damage in the houses you’re considering, and the best places to walk dogs or playgrounds for kids.

Decide on a neighborhood

When you feel confident that your research has answered every question you have about the pros and cons of each possible market, town, or neighborhood, it’s time to start narrowing down your choices to two or three (at most). Targeting your search is a smart thing to do, at least at the beginning; you can feel confident that the homes you’re looking at online meet some of your basic standards — your must-have list — and if you don’t find the right place in your narrowed set of two or three targeted areas, then you can always expand your horizons later on.

Choosing a specific neighborhood or region also has the advantage of allowing you to do some really deep digging on the average homes — their size, their price, their lot size, their amenities, and so on. You’ll need to know about how much you want to aim to spend before you start talking to a mortgage lender, and it’s much easier to do this kind of research on a small set of locations instead of an entire metropolitan area at one time; if most of the houses that seem appropriate to you are out of your reach financially, then that’s a signal that you might need to reconfigure your location options.

Pre-approval still matters

When you’re buying a house remotely, you probably want the process to move along as quickly as possible, and you want to seem competitive with any local buyers. This means you really should get pre-approved by a mortgage lender before you start shopping in earnest. Securing a pre-approval can be time-consuming because you have to submit so much documentation about your finances, your income, and any expenses, but sellers know that buyers with pre-approvals are both serious about buying and actually have the means to purchase a house for the price they’re offering.

A lender who operates in both your state and the state where you’re hoping to buy might be a good choice for you because the lender should, in theory, be familiar with both areas; that said, there are some parts of the country where property anomalies make it beneficial to consider a local lender instead. For example, if you’re looking at homes in a resort area in the mountains, a local lender will have already encountered any potential issues with construction materials, septic systems, and so on.

Securing the mortgage could be more challenging

Even if this is a home purchase that you’re intending to make your primary residence, be aware that getting a mortgage to buy a house in another state can require jumping through even more hoops than normal. For example, if you’re relocating and are moving from a city where your employer has its main office to a location with a satellite office — or if you’re planning to work remotely for your employer — then your mortgage lender is going to want proof that you’ll still have a steady income after you move, and will want verification of what that income amount is going to be. This means you might need to get a certified letter or notice from your employer to provide to your lender.

Purchasing a vacation home or second home is also more challenging than buying a primary residence; your down payment requirement could very well be higher, and it’s possible that you might not get as low a mortgage interest rate as you anticipated. Make sure your finances can accommodate these potential snags, and do your best to get everything cleared up mortgage-wise on the front end so that you don’t end up having to untangle a mess from several states away during the closing process, which is absolutely nobody’s idea of fun.

Hire a local agent

It might or might not be beneficial to hire a local lender, but it’s absolutely critical that you find a local real estate agent — preferably one who has specific knowledge about the neighborhood or area where you want to buy. Some remote buyers decide to work with the listing agent for the property they want to buy, and although this is possible, it’s usually not a good idea. A real estate agent represents you and your interests, putting your needs first, and an agent who’s representing both sides in a deal isn’t going to be able to advocate very well for you if push comes to shove.

Local agents will have worked deals in the area before, giving them an idea of what to expect in terms of potential snags or issues; having your own local agent on your side gives you the protection of a trusted, knowledgeable advisor. Some agents even specialize in helping remote buyers purchase homes in their state. Ask any local contacts you’ve cultivated to recommend a good real estate agent, or you can even ask the listing agent to recommend agents who they think do a stellar job representing clients.

Walk through a house at least once before making an offer

This might not be possible depending on your own availability, but if you can, do your best to walk through any home you’re seriously considering buying before you make an offer. Photos, video tours, and even Facetime walk-throughs are certainly valuable and can tell you a lot about a property, but there’s also a lot you could be missing if you don’t visit in person. What’s that weird smell in the bedroom, and can it be eliminated? Why do the floors slope like that in the hallway? You don’t want to discover that you can hear traffic from a nearby highway and that it keeps you awake at night after you move in.

If you can’t visit the house in person, make sure that someone you trust — a friend or a family member who knows you well — can do so in your stead. Real estate agents are fantastic resources, but if you just met yours, it’s usually best to find someone who’s familiar with your preferences and quirks and can apply what they know to the property you’re considering and give you an educated opinion about whether or not it would work for you.

Try to be there in person for the inspection

Maybe you couldn’t make the pre-purchase walk-through, but one time when you really should try your very hardest to be present at the house during the closing process is for the inspection. The inspector is going to look at all the major systems in the house, check the appliances, open and close windows and doors, look for signs of damage or structural problems — and it’s really in your best interests to be there in person so you can ask questions and request additional information or clarification around any fixes the inspector recommends or issues raised at the inspection. If it’s absolutely impossible for you to make the inspection in person, ask your agent to attend and video chats with you while the inspection is taking place so that you can make sure you’re fully apprised of any possible problems with the house before the sale closes.

…And consider additional inspections

Inspection requirements vary from state to state. Some states require pest inspections, for example, while others consider pest inspections optional. You might also want to get radon testing done if you’re buying in a state where that’s a factor, and there are a number of other inspections that might not be required to close, but that you might want to get anyway — especially if you haven’t seen the house in person yet, or if you know you aren’t going to be living there.

If something happens to your investment rental in between tenants while it’s sitting vacant, and that something is a result of a problem that could have been uncovered in an optional inspection, you’ll be kicking yourself for not seeing it sooner; a little extra money spent at this stage of the process could mean a lot saved down the road, so it’s well worth it to be as thorough as possible with the inspection process.

Consider a title agency with a national presence

You don’t actually have to be present for the closing, but working with a title company that at least has offices in your state and the state where you’re buying can really help expedite processes and make the closing smoother for everyone, including the seller. You can drop off a cashier’s check in person, for example, and not have to worry about wire fraud or tens of thousands of dollars potentially getting lost in the mail. Talk to your agent and to the seller about reliable title companies that will be convenient for all sides and see if you can find one that meets everyone’s needs.

Find a trustworthy property manager

If you’re going to be moving into the home yourself, then you obviously don’t need a property manager, but if the home is going to be an investment property or vacation rental, then you’ll need someone to look after it while you’re away. Your real estate agent probably has some recommendations for people who are reliable, trustworthy property managers, and this way you can make sure that the lawn is mowed, plumbing or electrical problems are promptly resolved, and the place is always ready for you when you show up for vacation or just to drop in and see how things are going.

Buying a house in another state might seem daunting, but it’s far from impossible. Make sure you know why you want to make this leap and do your best to enlist the best possible professional support on all sides, and you’ll be able to achieve your dream of real estate investment or homeownership — even from afar.

In most markets, it’s customary for sellers to work on their home until it’s in top condition before listing it for sale. But sometimes sellers need to offload their home without making those cosmetic touch-ups — or major repairs — for one reason or another. There’s no shame in selling a house as-is, but when you have a fixer-upper on your hands that you need to sell, you should be aware of how to do it in a way that nets you the best dollar amount possible while avoiding lingering on the market (unless that’s your plan, of course).

When you need to sell a fixer-upper and you can’t do the fixing-up yourself, here’s what you need to know and do to achieve the very best result for your personal scenario.

Thoroughly assess the situation

The term “fixer-upper” applies to a wide range of homes that can vary significantly from one another. Maybe your fixer-upper is simply dated — it hasn’t been modernized at all and still sports appliances and flooring from decades ago, and you don’t have the energy or money to update it before the sale. On the other end of the spectrum, maybe there are serious problems with the basic attributes of your home; it might need a new roof, have serious electrical or plumbing issues, or there might be a problem with the foundation.

Before you make a plan for how to sell your house, you’ll need to do a full investigation and take inventory of where you are and what needs to be done before the house is considered to be in sales-worthy condition. That does not mean you’re going to have to do that work yourself, but you’ll need to be able to answer buyers’ questions and decide what you could conceivably tackle to get the best possible price for your place.

It’s also a good idea to spend some time pricing the repairs that you’d need to make in order to get the house in tip-top shape. Again, this doesn’t mean you’ll do those repairs (or pay for them) yourself, but you might have some alternatives before you list the house entirely as-is, and knowing the price range for repairs that you’re facing is going to help you make some decisions about how to proceed.

Do your research before deciding to sell as-is

Once you have determined how much money it would cost to get your house in perfect sales-worthy condition, think about whether it might be worth your time to pay for those repairs and upgrades yourself. You don’t necessarily have to have a five-figure or six-figure savings account in order to make those repairs happen in a timely manner, either — there are refinancing programs and ways to tap into your home’s equity that might make all the difference in the final sale.

For example, the Federal Housing Administration (FHA) offers a refinance program called the 203(k) that includes money for certain repairs or renovations to the house. If you’re only selling because you can’t keep up with the repairs and would otherwise want to keep the home for yourself, but you have substantial equity in the property or have paid off the mortgage entirely, then this could be a good option for you. There are benefits and drawbacks to working with the FHA or other lenders — with the FHA, one benefit is the ability to provide a very low down payment, but you’d have to pay mortgage insurance, which would be a drawback.

Another possibility for homeowners with significant home equity would be a home equity loan or a home equity line of credit. You can use these loans to pay off bills or for renovations or repairs that would otherwise be too expensive to tackle. Spend some time researching your options and reading through the fine print. Even if you don’t want to stay in the house yourself and you know it’s time to sell, taking out a loan or refinancing in order to tackle the most critical repairs might be all it takes to get your house in pristine condition and net you top dollar on the open market. If you can pay everything off and still make a profit, then it might be well worth your time to consider financing the repairs yourself before you sell.

Work with an experienced agent

Just like any other profession, some real estate agents are better than others, and many agents specialize in one area of real estate. Selling a fixer-upper is not a good time to work with an inexperienced agent who has never sold an as-is property before — even if that agent is your neighbor’s son or your spouse’s cousin or someone else with a personal connection to your household. You’ll want to work with someone who’s familiar with the challenges involved in selling a fixer-upper and has a realistic, reasonable plan to meet and exceed those challenges.

Talk to friends and neighbors who have sold fixer-uppers about recommended real estate agents; general contractors also probably have some sense of which agents have successfully sold as-is properties and how effective those agents can be. If you don’t have any personal recommendations, make sure you ask agents you’re interviewing whether they’ve sold a fixer-upper before, what condition the homes were in, and how they were able to help the seller get the best possible results.

Consider the pool of possible buyers

The buyers who might possibly be interested in your house might seem smaller when you’re selling a fixer-upper instead of a house in peak condition — but this might or might not be true at all, depending on the market where you live. You very well might find some traditional buyers who are specifically seeking a house they can remodel top-to-bottom, but investors and contractors can also be solid possible buyers when you’re selling a house as-is.

Once you’ve found an experienced agent, spend some time brainstorming your list of possible buyers for your home, and think about the pros and cons of working with each. Investors might be able to pay all cash for your house, and there might be several of them looking at homes in your area; conversely, traditional buyers with dreams of fixing up a house to their exact specifications aren’t exactly thick on the ground in most markets, so if you’re hoping to sell to someone like that, be aware that it might take longer to find those buyers and your home will be sitting on the market in the meantime.

Highlight the location’s benefits …

Maybe your house is in a stellar school district, or it’s located near one of the most interesting and prominent landmarks in the area. Perhaps it’s within easy walking distance of a popular sports team’s playing field or arena, or near a trailhead.

Buyers might be specifically looking at homes in your neighborhood because they know about those perks and amenities, but don’t assume that every buyer is going to be completely familiar with all of the benefits that come with living in a house located where your house is. Spell out all of the features that the neighborhood and location have to offer to buyers and make sure they’re prominent, so buyers can fully understand why buying a fixer-upper in this area, in particular, could be a fantastic decision.

… And promote the home’s standout features

Even if your house needs work, it’s likely that there are a few features you can highlight for buyers that might sway them to make an offer. Maybe it’s original hardwood floors that are still in good condition, a larger-than-usual lot, a gorgeous garden or backyard, or a quaint original kitchen that still has all its original appliances — sometimes a drawback like a kitchen that hasn’t been modernized will be seen as a benefit to the right buyers with a sense of nostalgia!

Talk to your agent about the things that entice buyers to make offers in your area and figure out which of those features your home has, especially unusual or unique ones that will excite potential buyers. Then make sure those features are highlighted in any listing photos and written descriptions of your house to get full mileage out of them.

Spit and polish goes a long way

Even if you can’t make major repairs to the house, there’s a lot you can do to make it appear presentable and attractive to buyers. One way you can make a home appeal more to buyers that’s cheap and relatively easy is to clean it within an inch of its life. Get rid of any piles of trash or broken appliances or cars that you might have been hoping to fix — if you’re convinced those things might still be salvageable, that’s fine, but you need to find somewhere to store them that isn’t your fixer-upper while you figure out how to repair them.

Clean the windows and walls inside, get rid of any corner cobwebs, scrub the floors, and polish up the kitchen appliances until they shine. If the biggest problem with your bathroom is the fact that the sinks don’t drain well, see what you can do to remove those clogs and freshen up the pipes so that stagnant-water smell is eliminated. A clean home that needs a little bit of work will be more appealing to many buyers than a newer, updated home that’s cluttered and dusty, so do your best to get the place as clean as you can.

Make as many small fixes as possible

You don’t need to put a new roof on the place, or do the equivalent to the plumbing or electrical systems, but if it’s at all possible for you to make some minor repairs in the house — or have someone else do it — that will definitely help you net the highest possible sales price for your fixer-upper. Can you repair leaky pipes and paint over any water stains? Replace a torn screen or two?

Refer to your list of necessary repairs that you made when you assessed the issues with the house, then determine what it’s reasonable and realistic for you to handle yourself or what you can afford to pay someone else to do. The more presentable you can make the house for buyers, the more offers you’ll get for more money, so it’s absolutely worth your time to tackle even the little things (especially the little things) before you list it for sale.

Enhance curb appeal

Some buyers will be willing to overlook some relatively major issues inside a house if the outside looks cute as a button, so think about what you can do to enhance your home’s curb appeal. Water and mow the lawn, plant some flowers, hang wind chimes on the porch and put a rocking chair or two out on display, and maybe even purchase some solar lights for the path or driveway — they’re cheaper than ever and provide quite a bit of additional appeal, especially if the buyer is looking at your home in the evening.

Even if you can’t invest in landscaping for your yard or home, if the shrubs and trees are trimmed, the grass is green and mowed, and there are pots of flowers here and there, it all goes a long way toward making your fixer-upper appear less shabby and more like a lived-in, well-loved home.

Price competitively

This is probably the most important step on the list, and it’s smart to get an experienced agent’s opinion about what, exactly, “competitively” means in your market. You might already be aware that you’re not going to get the same price for your house that a fully renovated neighbor’s house was able to net — and if you’re not aware or you’re in denial, now is the time to accept reality.

Investors will want to make sure they can net a profit when they flip or rent the house after they’ve factored in the sales price and the cost of any updates or upgrades. And even traditional buyers seeking a fixer-upper on purpose are not going to want to pay full price for an as-is home; they’ll need to save some of their money for materials to make repairs, or to pay a contractor themselves. Talk to your agent about what you can realistically expect to get for your house, and if you really need it to sell quickly and you aren’t willing to wait for a buyer who’s excited to repair your house and thinks it’s perfect, then make sure you’re also discussing timing — you might need to shave a few more dollars off that sales price to get the house under contract sooner rather than later.

Be upfront about necessary work

Remember, there’s probably going to be an inspection involved in this sales process at some point, and if the buyer discovers that you’ve been misleading — intentionally or otherwise — about the amount of work needed to get the home into top condition, they would be well within their rights to terminate the sale and send you back to the open market. Be as upfront as possible about the work that this property is going to require, and if the buyer asks a question and you don’t know the answer, be honest! It might even be worth the time and money to hire an inspector before you list the house so that you can provide buyers with the report and they can see for themselves what might be involved in terms of repairs, but even if you don’t do that, resist the temptation to paint your fixer-upper in glowing terms; you might lose a buyer that way who otherwise would have been happy to snatch up the deal you’re offering.

If you’re in a situation where you need to sell a fixer-upper, don’t get discouraged before you get going. Secure the help of an experienced real estate agent who can give you a realistic idea of the price you could get and help connect you with contractors, inspectors, and other professionals; do what you can on your own to enhance your home’s appeal; and stay confident that you’ll be able to sell the house for the price you need to the right buyer.

Lots of us enjoy whiling away an hour or three watching those shows on HGTV that involve an attractive couple buying a house, spending what seems like a few hours (or days) making some repairs and upgrades here and there, then either moving into the home of their dreams or flipping it for some serious cash profit. And if you’re going to fantasize about some aspect of homeownership, you could do a lot worse than creating your own private castles in the clouds that you help build and finish all on your own.

That said, the reality behind buying a fixer-upper is a lot starker and more difficult than what you see on HGTV. There are more buyers than ever who are hoping to create their perfect fantasy home out of a fixer-upper, or who think they can flip a house just like those attractive couples on television — and some of them discover they’re wrong only after hundreds of hours and thousands of dollars have been spent, never to be recovered. To make sure you’re making the right decision and following a realistic plan with your fixer-upper, educate yourself about the following realities and necessities of buying a home as-is, whether you plan to fix and flip it or turn it into a gorgeous residence where you’ll be happy for years to come.

What’s your plan for the fixer-upper?

People tend to buy fixer-uppers for two main reasons: They want to try their hands at fixing and flipping a house, possibly exploring this kind of investment as a new career path, or they’d like to buy a house for cheaper than average in a certain neighborhood that they can polish up and live in. Regardless of which path you want to take, there are some other details you’ll need to plan before you start shopping.

Where are you going to live while this to-be-purchased house is being renovated, for starters? Whether you want to flip the house or turn it into your own primary residence, decide if you can stand living in a house that’s undergoing some serious changes or if it might make more sense for you to maintain a separate residence while the house is being transformed. The second option is obviously financially prohibitive for some people, but maybe you can get creative — do you have friends or family who might be willing to let you crash in a spare room while you’re working on the fixer-upper, for example?

If you do want to live in the home while it’s being fixed up, then you might need to truncate your timeline for some of the repairs. Living in a home where all of the bathrooms are off-limits at once due to simultaneous renovation is not really feasible for most of us humans, and you might want to remodel your kitchen step-by-step instead of doing it all at once if the idea of living off of take-out or soup heated up on a hot plate is enough to make you twitch just thinking about it.

Do the math

Would-be investors who are hoping to make a profit from their fixer-upper already know that it’s critical to get the math right — if you spend too much on the house itself, or on any of the repairs, then your profit will evaporate, and you never know what’s going to happen to the real estate market months down the road. Getting those repairs done quickly will be important, but you can almost guarantee that your planned schedule and budget for fixing up the house are both going to get derailed by at least a little bit before all is said and done (more on that later).

If you want to live in the house, then your timeline for getting everything done is more flexible, but you still need to be very clear about how much money you’re able to spend on the house, and what the major repairs will entail in terms of financing. You don’t want to run out of money mid-renovation and find yourself living among plastic sheeting and torn-up floors indefinitely, with no end in sight.

Take a good, unblinking look at your financial situation and figure out what you could potentially pay for a fixer-upper and how you’re going to handle the expenses of the actual fixing-up that you’ll have to do. There are a number of mortgage loans available that factor in renovation and repair costs for fixer-uppers; your mortgage broker should be a good source of information for which of those loans is best for you (if any), and a financial planner can help you figure out a good budget and timeline that will work for your household. (But before you set either that budget or timeline in stone, talk to a contractor to figure out if it’s realistic — if not, go back to the drawing board!)

Be willing to pitch in … and honest about your abilities

Fixing up a house is cheaper if the homeowner is willing to help with at least some of the repairs, so ask yourself how much you might be able to help — and don’t overestimate your ability to get the work done. If you aren’t a contractor yourself and don’t have experience with repairs or renovations beyond a little painting and maybe changing a light bulb here and there, then it’s absolutely unrealistic to expect that you can tackle major structural issues, plumbing problems, or electrical nightmares.

There probably is quite a bit you can do yourself, though, from replacing light fixtures to painting or wallpapering rooms, or even refinishing wood floors yourself. YouTube can be a wonderful resource for figuring out how to do these things, so watch some videos and get a sense for what you might be willing and able to tackle yourself, and what’s probably beyond your scope. When in doubt, opt to hire a professional — it’s probably going to cost more in the long run if you try and fail to fix something yourself, and only then decide to bring in the pros. You’ll be much better off if you can be honest with yourself about what you can and can’t do and err on the side of “this looks beyond my current abilities” after you’ve watched a few videos and educated yourself about the process.

Location is key

You can change a lot of things about a house, but one thing that is downright impossible to adjust is where it’s located; you can’t pick it up and move it to a different lot without spending a lot more money than you’re probably willing to invest. Homes near a landfill, in a crime-ridden neighborhood, or located in poorly performing school districts are likely not going to be a great investment unless something well beyond your control happens to change the surroundings completely, so prioritize location when you start shopping for your fixer-upper. By the same token, waterfront homes, homes near national forest or parks, and homes in proximity to other desirable landmarks or features might be perfect choices even if you think the repairs are going to be extensive.

That said, unless you’re willing to tear a house down and rebuild another one in its place, don’t go overboard just because you love the location or the lot — some things, like extensive mold problems, are so expensive to fix that if you don’t want to deal with a tear-down, you should skip it even if you love the location.

Popular is better when it comes to bed/bath count

Some of the more difficult home renovations include adding a bedroom or a bathroom (more on those later), so if most of the homes in the area have three bedrooms and the fixer-upper you’re eyeing only has two, it might not be worth your time to try to flip that house, and if you buy it with plans to live there, be aware that its resale value is likely going to be below neighborhood averages. On the other hand, if the fixer-upper has four bedrooms and the neighborhood standard is three, then it might be worth it to buy that house just because an additional bedroom will make it an upgrade compared to the rest of the area once you’re finished fixing it up.

If you’re not sure what’s common in the area where you’re looking, a real estate agent, a general contractor, or even your county records office can be good resources for determining what’s popular and what’s an outlier.

Looking past cosmetic problems

There are two main types of fixer-uppers that you’ll see on the market. One is an ugly house — and ugly can be fixed! — but the other should be strenuously avoided if at all possible: The tear-down. Unless you’re a contractor with years of experience and lots of confidence in your abilities, a house that requires a significant amount of work is going to cause you more headaches than it’s worth, especially if it’s your first time buying a fixer-upper.

That said, if you can look beyond the obvious cosmetic issues to see the potential in a home, then you can often find a great deal that can be relatively easily transformed into a dream property. Old or outdated carpeting, shabby cabinets, peeling paint, ugly light fixtures, and other items like that are usually easy fixes, although they can be real deterrents to buyers who are looking for a move-in-ready home.

Evaluate the layout

Another thing you’ll want to consider as you shop fixer-uppers is the layout. An intuitive layout that flows from room to room and is easy to navigate might be a good house for you to make an offer on, assuming there are no major issues that will be prohibitively expensive. Do the windows capture plenty of natural sunlight? Are the kitchen close to the dining room and the living room? How are the bedrooms placed in relation to each other and in relation to the bathrooms? Knocking down walls and significantly changing the home’s layout is usually beyond the abilities of most fixer-upper buyers, so finding a house with a layout you can work with and don’t assume you can fix layout issues easily unless you’ve talked to a contractor you trust who can shore up your assumption.

Fixing up the fixer-upper: Easy or difficult?

As mentioned, there are some repairs or upgrades that will be easy for you to tackle on your own, and some that are going to require professional help — or that might simply be too expensive for you to include in your budget. How do you know which one is which? If you’re not sure what comprises an easy fix and what counts as difficult, talk to a contractor and get their opinion, but there are some general rules of thumb that you can use when you’re evaluating a fixer-upper for sale.

Easy fixes include patching and painting walls, or adding wallpaper to them; replacing carpet, laying tile, or refinishing wood floors; replacing light fixtures or fans; fixing or adding trim and baseboards to rooms; fixing broken window panes; replacing doors; replacing or refacing kitchen cabinets; adding a deck; and painting the exterior of the house — although there are more repairs and upgrades that you might feel confident tackling yourself, depending on your experience and ability levels, so don’t consider this a comprehensive list.

Difficult fixes include adding a garage or another room to the house, especially if you’re not simply putting up a new interior wall but instead are adding square footage to the building; full bathroom and kitchen remodels; replacing or adding heating, cooling, or ventilation systems; fixing foundation problems; replacing plumbing, sewage, or electrical systems; replacing the windows in the house; and pouring concrete outside in driveways or to fix sidewalk or walkway cracks.

Figure out where you can add and conquer

The best time to tack on an additional task when fixing up a house is when you’re already working on the same room, wall, or area. For example, if you need to replace the insulation in one of your outdoor walls and also want to add a picture window, tackling both of those projects at the same time will save you money and time. Add shelves in your kitchen cabinets while you’re also refacing those cabinets. Replace the sink in the kitchen when you redo the countertops. Deciding where you can add projects here and there will help you get to the final desired result faster and will actually minimize the amount of time that the home is under construction.

Extra inspections are worth it

Before you reach the closing table on your fixer-upper, negotiate extra inspections with the seller so that you are absolutely clear on what you’re getting into and what will need to be done. One example is a pest inspection: Although your inspector will look for evidence of pests as part of the general home inspection, a pest inspection is more thorough and can help you determine how extensive (if present) the pest problem might be. Older or more deteriorated homes can also benefit from a sewer line inspection and a roof certification so that you can get a good sense of whether you’ll need to replace either of those high-dollar items before you acquire the home as your own.

Prepare for permits

If you want to dig a pool in your backyard, you don’t want to discover that the house you bought isn’t zoned for pools after it’s yours, and you definitely don’t want to discover that the addition or change you made to your house isn’t zoned in your area when you’re getting ready to sell the place; one way to avoid those circumstances is to spend some time researching appropriate permits in the city or county where the house is located. Figure out how much those permits cost and what’s involved or included so that when the time comes to actually make those repairs or upgrades, you’re fully ready — and certified and permitted — to do it.

Save money on fixtures …

When it comes to faucets and sinks, bathtubs, toilets, lights, fans, and other similar fixtures for your house, you’ll probably discover that there’s a range of prices available — and that price range might vary for the exact same product at a home warehouse chain if you look at a different location. Shopping around for fixtures to find the best deal can often save you money if you’re willing to do the legwork to figure out where you can get the brand you like best for the least amount of cash.

… But it usually pays to splurge on materials

You might be tempted to cut corners when it comes to materials for your house, such as insulation, wood trim, siding, or other materials you might need to complete the projects on your list. But if you can, it’s usually worth it to pay for the mid-range or more expensive versions of the materials you’re considering; they typically last longer and have fewer problems than the lower-range versions, and it’s pretty frustrating to have to repair something you renovated not that long ago just because you wanted to save money on materials.

Decide where you can (and can’t) compromise

You might need to make some decisions about what aspects of your dream home (or dream flip) should be sacrificed when push comes to shove, so it’s worth your time to determine upfront whether you absolutely have to have a certain feature or whether it’s negotiable. Maybe you really want a certain kind of kitchen countertop but are less sold on the oh-so-popular farmhouse sink, or vice versa — or maybe you really want a luxurious shower experience and are less concerned about the bath, or if you even want a bathtub in the property. If you’ll be sharing the home with other household members, get their input as well, and decide together what’s on your list of must-haves and what’s more of a nice-to-have, so you know what needs to go if you end up having to make a one-or-the-other decision at some point during the renovation process.

Find reliable, capable contractors

A good contractor — or a bad one — can make or break your home renovation experience. If you spend a lot of time researching just one aspect of your home renovation, it really pays to make sure that single aspect is the contractor who will be overseeing the work that needs to be done and that you can’t tackle yourself. Get referrals from people you trust, look at online reviews, check references, ask to see photos of past projects, and do whatever you can to ensure that the contractor who ends up being your go-to is good at what they do, shows up when they say they will, communicates well, and is transparent about the cost of their work. It will be the best decision you can possibly make around your fixer-upper.

Be prepared to go over budget and past schedule

Even the best contractor can’t predict all of the possibilities that could derail a home renovation or repair project, so it’s up to you to be realistic about both your budget and your schedule, especially for major endeavors like adding a garage or a full kitchen remodel. Understand that the work might cost more than projected and could take longer than estimated — plan on it, in fact — and then you won’t be unduly shocked if that ends up happening, and might wind up pleasantly surprised if everything goes according to plan.

Many buyers dream about fixing up a house, but it’s not a project for the faint of heart. You can be one of the buyers who actually do it if you’re willing and able to plan for all contingencies and do your research upfront, whether you want to fix and flip or renovate a house from a nightmare property into your dream home.

When moving out of a primary residence, most homeowners make the obvious decision to sell their current property. But is that really the best choice for you? The answer, of course, depends on many factors — your current financial and housing situation, the real estate and rental market where you live, and several others that can add up to help you make a decision about what to do.

If you know you’re going to be leaving a house that you own and currently live in, consider how renting it instead of selling it might benefit you — or whether it would be too much trouble and not lucrative enough to bother with as an option. To determine what choice is the best one for you and your current situation, ask yourself these questions and then move forward with whichever path is going to serve you better long-term.

Will you make a profit if you rent?

This is arguably the biggest, most important question to answer before you move on to other factors involved in your decision, and the variables that will influence your profit (or loss) can be complicated, so make sure you spend plenty of time figuring out what a realistic profit would look like and whether you can make it happen.

If you’re still paying a mortgage on your primary residence (and you probably are), then you’ll need to make sure you can cover your mortgage with the rent price you’d like to charge. You’ll also have to pay for insurance on the home — and this is likely going to be more expensive if you rent it out than straight homeowners’ insurance would be, so price insurance costs for a rental with your insurance agent. Property taxes and HOA fees will still need to be paid, too, so include those in the monthly expenses.

And then there are a number of other costs involved with renting a house that you’ll want to add to your balance sheet before you can know for sure whether this will be a profitable step to take or whether you’d be losing money every month. There will likely be repairs you have to make here and there to the property — that’s only to be expected. If you don’t want to deal with the ins and outs of being a landlord yourself (screening tenants, scheduling repairs, and so on), then you’ll want to hire a property manager, and that can cost up to 10% of the monthly rental income. It’s unlikely that your home will be occupied constantly, so consider the cost of vacancies, and you’ll also need to pay to market the house when it is vacant so you can attract new tenants. Finally, if you want to do any rental reference checks or credit checks on tenants, you’ll need to accommodate those costs into your calculations, too.

Once you’ve added up all the expenses and done some research on fair-market rental prices for your area, you can determine whether or not you’d be making a profit every month or year, or whether renting would cost you more money than it would make you.

Do you need the money from a sale sooner rather than later?

When you have debts that need to be paid or you can’t afford the mortgage on your home anymore, it probably makes more sense to sell the property instead of trying to rent it out. Take a look at your current financial situation to determine how critical those funds would be for your future; also consider the fact that ideally, renting your home will produce a profit every month that you can collect as long as you have tenants willing to pay the rent price.

If you’re really not sure whether it would be more financially viable to rent or sell your house, talk to a financial advisor about it. Maybe you can set up a payment plan for some of those debts and use the rental profit to pay them off over time, or maybe you could use the cash from a sale to make some smart investments and retire sooner. Nobody knows your financial situation as you do, so do some assessing of where you are and where you want to be, and then figure out whether renting or selling would get you closer to that goal.

Will you want to move back in eventually?

Another important factor to consider is whether you’d want to move back into your house eventually. If you’re moving out of the area, but there’s a chance you might want to return at some point, then keeping the house and renting it out will probably ultimately be cheaper for you long-term than selling your house and then trying to find something comparable a few months or years down the road.

Maybe you’re not sure if you want to move back or not — that’s fine! If it’s even a remote possibility, though, sometimes it’s nice to have a backup plan for housing, especially if you’re heading off to a new adventure and you aren’t sure how things are going to go. Obviously, you don’t want to plan to fail, but knowing that you have a safety net if you need one and can get back into your old digs without buying them back might be worth quite a bit when push comes to shove.

And if you’re upgrading or downsizing, then this lens looks slightly different. Maybe you’re not sure you’ll enjoy moving into a condo or a smaller home and there’s a strong possibility you might want your old space back. Or maybe you’re not certain that the upkeep and cleaning that a larger space requires is going to work out well for you. It’s even possible that you’re not certain your current household configuration is going to last all that long — if you have kids who are about to fly the nest in a few years, or (hopefully not!) you’re unclear that your relationship is going to go the distance, then keeping your home and renting it out might be a good decision long-term.

Can you improve or update the house right now?

Homes that sell the most quickly and for the highest prices in any market are always the nicest, most updated homes available for buyers. If your home doesn’t measure up to the neighbors in terms of the appliances and updates, and if you really don’t have the money or the interest in fixing or renovating your house so that it’s going to capture top dollar for you on the real estate market, then renting might be a good choice for you.

Tenants are typically a lot less selective than buyers when it comes to the brand of appliance used in the kitchen, the wear and tear on the carpeting in the bedroom, or the landscaping in the front or back yards. So if you know your house isn’t exactly the definition of move-in-ready — especially compared to other homes on the market in your area — consider renting it for the time being and wait until you can make those upgrades before you sell it.

Do you want to live a landlord life?

If you don’t want to hire a property manager, it’s important to ask yourself whether you’d feel comfortable or would enjoy being a landlord. You might need to have some difficult conversations with any tenants who haven’t paid rent. You will almost certainly have to arrange for repairs to be made to the house, usually at the most inconvenient time possible — sewer mains and electrical systems tend to fail when it’s most expensive to fix them, like after 5 p.m., on weekends, or on holidays. Finding and screening tenants can be time-consuming. And tenants usually aren’t going to treat your property the same way you would if you lived there, so if the thought of your precious floors or countertops getting dinged or scratched (or worse) makes you shudder, realize it’s one of the possible downsides of being a landlord.

After thinking about it, if you decide you really don’t want to live a landlord life, then you’ll know that you either should sell your house or hire a property manager to handle it.

What’s the real estate market doing?

There’s no single indication that you should sell or rent depending on the real estate market’s current activity, but it can definitely help inform your decision. Maybe the market’s been on an upswing for several years and it’s looking likely that prices are going to drop in the future — in that case, it might make sense to sell now, while your house is at its peak value for the time being. But if you owe more on your mortgage than the house is worth, it might be wiser to play a long game and rent it out until the market catches up to your debt or vice versa. If prices look like they’re going to continue to rise in the future, then renting, for now, might be your best bet; you can plan on selling and making a bigger profit a few years down the road.

Talk to a real estate agent about where they see the market going, and if you can, try to make sure you’re getting opinions from someone who’s worked in real estate through several market cycles. Nobody can predict the future, but an experienced agent knows the warning signs of a seller’s market or a buyer’s market, and they can give you an educated opinion about what to expect for at least the next year, if not further.

How about the rental market?

Some rental markets are healthier than others, and if yours isn’t looking all that robust, then now might be a good time to sell instead of count on the rental market improving. On the other hand, if the rental market looks strong and there are indications that it’s only going to get stronger — low unemployment and plenty of job opportunities in your area, for example — then renting might be the best way to handle your departure from your house.

This is another area where an experienced real estate agent or a property manager can give you some insight into how you should approach your decision. Get some estimates on rent for your house and ask their opinions about whether it would be more likely to increase or decrease in the future so that you can weigh that along with other factors as you figure out what to do.

Can you afford capital gains tax if you sell later?

If you sell a home that you own but haven’t been living in for the past two years, then you’ll have to pay capital gains tax on any profit you make from the sale. This could wind up being a significant amount of money, and it can be a nasty surprise for homeowners who were hoping to pocket the entire profit. Think about whether or not your finances can handle the capital gains hit if you sell your house as a landlord or investor instead of as a resident.

Are you going to buy or rent another house to live in?

Spoiler alert: When you leave this house, you’re going to have to find somewhere else to live. If you’re planning on renting a house wherever you go, then it might make sense to in turn rent your house out to someone — but if you want to buy a house wherever you land, then it’s entirely possible you might need the proceeds from the sale of your current house to pay the down payment on your new abode. If you don’t have a down payment saved up separately from your home’s equity, you could end up paying mortgage insurance on one house while renting out another, and ultimately it might not make very much financial sense to rent your current house and buy a new one. Think about your plans after you leave your current house and what it would mean to sell or rent your current home before you move on.

Can you healthily absorb a financial hit or two?

Renting a house that you own includes lots of surprises, most of them not so pleasant. Can you afford to replace a water main if it breaks, handle a month or two of mortgage payments if the place is vacant, and replace the carpet and paint the walls in between tenants? Remember, most tenants aren’t going to be as careful with a house they’re renting as they would with a home that they own, so you should plan on doing at least some minor cosmetic repairs and upgrades after tenants leave to make sure the place is in decent condition for incoming renters.

Nobody can tell you whether selling or renting your current home makes more sense — it’s really going to depend on you and your current situation. Think through these questions before you arrive at a decision, and you’ll be able to make an educated choice about what to do that works well for you long-term.

The final walk-through is an exciting time for buyers: The house is almost yours! It can be tempting to spend the time set aside for the walk-through mentally planning where you’ll place your furniture and hang your wall art — but there are some things you should make time to check before you leave the walk-through and get ready to close. Otherwise, you might find yourself unpleasantly surprised once the keys are handed over and the seller is no longer responsible for the property.

What should you expect from the final walk-through as the buyer? These items should all be addressed as you meander through the house before you sit at the closing table. (Bring a copy of your contract and your real estate agent to help you with the walk-through.)

The walk-through should happen at least the day before the closing is scheduled

Some sellers might ask you to schedule the final walk-through on the same day as closing — this can be problematic for a number of reasons, but the biggest one is this: What if you find something that needs to be addressed before you close? You’ll have to give the seller time to tie up any loose ends if you happen to discover them, so make sure you’re scheduling the final walk-through at least one day before your closing is supposed to happen; two days might be even better.

Sellers should have removed all their belongings

If you offered sellers extra time to move out as an incentive to go with your offer over another buyer’s, then this item might not apply, but you’d be surprised how many sellers wait until the very last minute to get their personal belongings out of the house. There are even some horror stories about final walk-throughs where sellers haven’t started to move out at all, expecting the buyer to help them or even to pay for the movers! Depending on the terms of your contract, this could be grounds to totally tank the sale … plus, in most areas, any possessions left in the house after closing become the buyer’s property.

Utilities should be operating

You aren’t going to be able to test the lights or the sinks if the electricity or the water has been shut off! Plus, turning off utilities in a vacant house can have some unpleasant side effects, and in many states, it’s a legal requirement that the seller keeps the utilities on until closing.

Trash or debris should not be present

It’s not uncommon for sellers to still be working on their own move and any last-minute repairs as you make the final walk-through, but if there are bags of trash that the seller doesn’t appear to be inclined to move, or even paint containers, then you might need to talk to the seller about finishing up. Maybe you want that paint for touch-ups, but perhaps you’re planning on painting over it and the seller is really just leaving you another thing to do (dispose of paint: check!) as you move in, so make sure the seller knows what you do and don’t want to be left behind.

The home should be clean

We all have at least slightly different standards around what it means to have a “clean” house, but if there’s mud all over the entryway or dirt or cobwebs in the corners, you’re definitely within your rights as a buyer to make sure that the seller takes care of it before you move in. You’ll probably want to do your own deep clean before you start moving your things in, but it’s not unreasonable to expect any major messes to get cleaned up before you take ownership of the house.

Negotiated repairs should be finished

After the inspection, you probably had a list of repairs that you wanted the seller to handle — whether that list was short or long, this is the best time you’ll have to make sure that any negotiated repairs actually got completed, and raise a red flag if you discover that they have not. Remember, it’s going to be your responsibility after closing, and you deserve to have the agreed-upon repairs made before that happens.

Lights and outlets should be in good working order

Test all of the lights and outlets to make sure that everything is working, because you probably don’t want to deal with an electrician as soon as you start moving in. Bring a phone charger with you so that you can check the outlets, and for good measure, open up the breaker box and make sure everything still looks kosher.

Water should run freely, with no under-sink leaks

Check the sinks, showers, and tubs throughout the house, and pay special attention to any indications that there are leaks, especially underneath the sinks. Just like with an electrician, you don’t want a plumber working on your new (to you) house as you’re trying to get settled.

Appliances should be working appropriately

The appliances that the seller is leaving for your use — such as the stove, oven, and in some cases, the refrigerator and washer and dryer — should all be operating and functional, with no leaks or issues.

Included items should be present

Speaking of appliances, if you agreed in the contract that the seller would leave the washer and dryer, make sure that those things are actually present when you do the walk-through. Can’t remember what was included in the contract? This is why it’s a good idea to bring a copy of the contract (and your agent) with you so that you can make sure everything that you agreed would stay with the house is still there.

Toilets should flush with no issues

In a worst-case scenario, you might discover that there’s an issue with the water main outside that emerges when you flush a toilet — but an issue might be something as minor as a leak when the tank refills or something similar. Make sure you’re not inheriting problems like these by flushing toilets and checking for any corresponding signs that all is not well with your plumbing.

Ceilings, walls, and floors should be free of stains, cracks, mold, and holes

After the seller has removed artwork from the walls, they should be patching any holes to give you a fresh start, but you’ll also want to look at the ceilings, walls, and floors for potential problems that might require a general contractor to fix — stains, cracks, or mold could be indications of leaks, for example. Take a close look at every room and ensure you’re not going to be dealing with a lingering issue.

The garbage disposal and fans should be operational

Turn on the garbage disposal and any ceiling or hood fans to make sure everything is working properly. Again, this isn’t something you want to be dealing with or fixing while you’re also trying to move into a new place.

Windows and doors should open and close

It might seem silly, but make sure that all of the windows and doors open and close smoothly so that you aren’t unpleasantly surprised when you try to open the windows to air out the house and discover they’re nailed shut. This is something your inspector has already checked, but it’s worth checking again before the deed is signed and the house is yours.

HVAC systems should be working

Homes with heating or air conditioning systems (or both) are wonderful modern conveniences … unless, of course, those systems aren’t operating properly. Make sure you test any systems while you’re there for the final walk-through so you can ensure everything is working as it should be when you move in.

Landscaping should be maintained

You will probably notice as soon as you arrive if the seller has let the grass grow for weeks without mowing it, or if they’ve decided to uproot a shrub or a small tree to take it with them — believe it or not, it happens! Do a quick walk around the property to note any landscaping problems and get them addressed before they become your problem entirely.

The home should be free of moving damage

Deep scratches in wooden floor or dings on the walls might be a side effect of moving a bunch of furniture and personal items out of the house — that’s fair enough, but if that’s the case, the seller should have repaired that cosmetic damage before the final walk-through. If you see evidence that the house you’re about to buy beat up in the move, you have every right to request fixes before you hit the closing table with the seller.

The doorbell should ring

Not every home has a doorbell, but if yours does, test it to make sure the thing rings! Like the other items on this list, you don’t want to discover that the doorbell is malfunctioning when your new furniture is supposed to arrive, for example, so do your due diligence and test it during the walk-through.

Lots of buyers get enamored with their new home during the final walk-through and want to spend some time basking in the place that’s about to be theirs — that’s totally normal. Just make sure you don’t neglect the basics in your final walk-through so that you can fully enjoy the house (problem-free!) when you start to move your things in and take possession of your property for the first time.