![]() You can calculate whether you’re able to afford a home that needs TLC with a quick formula:ġ. Use this quick calculation to set your bid for a ‘TLC’ home ![]() But making structural changes requires checking local zoning laws and obtaining building permits (which cost about $1,091 on average nationally), or hiring a contractor-to say nothing of any surprises from the project not going according to plan. If the TLC that the property needs is cosmetic, you likely won’t blow your budget. ![]() The drawback of such a purchase is the cost of any repairs. A lower sale price reduces your home’s assessed value for property tax calculations (so you could get an affordable house in a great neighborhood) and you can make the home worth more than you paid, netting a nice profit when you decide to sell.ĭepending on where you live, you also may be eligible for a tax abatement, which is a tax credit for homeowners who improve their property’s value, according to Northwestern Mutual. Source: (Christa Grover/ Pexels) A chance to personalize and profit laterĪ home that “needs TLC” could be a great opportunity to save money upfront while infusing a property with your own personal tastes and preferences as you make cosmetic improvements.įixer-upper homes typically list for 8% below market value, according to the financial website MarketWatch. So, even if you’re not exactly handy, don’t cross a “TLC” home off your list until you’ve at least browsed the photos and done a little more research to find out how much work it would be. Some sellers and agents, out of an abundance of caution, will note that a house needs TLC when its troubles are mild so as not to mislead potential buyers. In this case, they may highlight the floor plan and other features while noting that the place needs a bit of work-or TLC. Coming from a place of cautionĭepending on market conditions and a home’s age, some agents will recommend that sellers avoid spending money on a total overhaul of their property as long as there are no structural or safety issues. They want to give buyers a heads-up that the home isn’t perfect, but “it’s not that there’s anything particularly wrong with the house,” explains Strope.įor example, a listing for a two-bedroom, two-bath condo in the prestigious Toluca Lake section of Los Angeles notes that the property “needs some TLC/modernization.” The photos indicate that the condo could benefit from new kitchen appliances while offering other perks: It’s located away from the street, offers an open floor plan, and comes with access to a garden patio. Others have taken care of the maintenance but haven’t upgraded outdated design features or appliances. Some people may be selling a relative’s home and don’t have the time or financial capability to handle any repairs. (Talk about “light” repairs!) Owner doesn’t have the funds or time for repairs “For some people in a luxury market, TLC might mean that they need to scrub down the walls because there are fingerprints,” Strope says. A buyer could improve the house with upgrades to outdated touches such as kitchen cabinets and lighting fixtures, but they wouldn’t have a total gut job on their hands. In some cases “TLC” means “ quick fixer-upper”-in other words, a house that needs cosmetic changes such as paint, carpeting, or refinished floors but is otherwise structurally sound. “Everyone has a different idea of what that means.” In that sense, “TLC in real estate is totally an issue of perspective,” said Sue Strope, a top-selling agent in Florida’s Port Charlotte and Punta Gorda areas with 30 years of experience. ![]() What we found in our research and by talking to top agents in the field is that it’s all a little more nuanced. Various online sources warn buyers that “needs TLC” is a nice way of saying “fixer upper” or total teardown. Source: (Milly Eaton/ Pexels) Will a little cosmetic facelift do the trick? Let’s examine what “TLC” means for homebuyers and whether the common label on property listings is a warning sign of a project on your hands or your ticket to a great deal. In real estate, the well-known three letters that stand for “tender loving care” translate a little differently. When a loved one needs TLC, you bring over soup and offer a lot of free hugs.
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