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3 Crucial Things You Need to Know Before Buying a Fixer Upper

by Rachael Ray Show Staff 9:00 AM, August 24, 2015

Aired August 24, 2015

by Lisa Lozano

If you’re in the market for a new home, but are looking for a diamond in the rough that you can renovate and turn into your dream home, HGTV's Property Brothers Drew and Jonathan Scott have crucial advice for you.

The brothers, a realtor and a contractor, team up on their show to help homeowners purchase and renovate properties in order to get the home of their dreams on a budget. So what rules do they themselves follow when hunting for a fixer-upper?

Rule 1: Crunch the Numbers Before You Buy

Jonathan advises putting a stipulation in your offer that you want to bring in a contractor before you close, so you can get an estimate of what it will cost to bring the home to where you want it to be. That way, if it ends up being too expensive, you can walk way without losing a hefty deposit.

Rule 2: Get to Know the Neighborhood

Drew advises touring your prospective new neighborhood at various times of the day, so that you can get a good feel of whether it’s a place you want to live. In addition, learn what properties are selling for in the area, so that you can make a good decision on what to offer.

Rule 3: Don’t Over-Renovate

Jonathan and Drew both stress that it’s really important to not put more money into the home than you can get back if you want or need to sell. Get a good idea of what buyers in the area are willing to pay for, and adjust your renovations accordingly.

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