Real estate listings typically feature many phrases that provide potential buyers with various clues regarding the motivation of the seller or the home’s condition. Of the more commonly used, TLC tells prospective customers that the property will need “tender loving care”. If you can invest in renovations, you may have stumbled upon a great deal.
What does the term ‘TLC’ mean?
What does a buyer investing in a house asking for TLC need to do? In the event the house requires TLC, a buyer will be required to address much more than the installation of new floors or laying on some paint.
TLC houses often have significant structural issues that need to be addressed — including but not limited to shifting, sagging, leaking, an outdated knob or tube electrical, cracked siding, peeling paint, leaking windows, etc. Aside from the term of discussion, they are also typically referred to as “handyman specials”.
Are these kinds of homes sold ‘as-is’?
Yes. What you see is what you will get. This is due to the fact that, in many cases, the lender is trying to sell after repossessing via foreclosure. When a home is sold as-is, the seller isn’t usually willing to complete renovations and repair work needed by the buyer.
Fixer-Upper vs. TLC
Unfortunately, these terms are constantly used interchangeably. As a result, the intended meaning behind them changes based on the professional.
Fixer-uppers sometimes mean simple cosmetic fixes and minor repairs. Yet, other times, they apply to properties that demand a total revamp to make it a livable space.
Regardless, prospects should ensure to see the place in person as it can be risky to purchase a site unseen in the event it is identified as either TLC or a fixer-upper.
How much time and money will need to be put into a TLC property?
Multiple factors are involved for TLC homes that require renovation. The amount of resources spent depends entirely on the materials and whether or not the buyer decides to DIY. The best bet is to consider improvements and upgrades that do not involve electrical upgrades, the moving of walls, or changes to the plumbing.
Structural problems affecting roofs, broken windows, or replacement of the heating, ventilation, and cooling (HVAC) system of the commercial property demand significant investments. An additional factor includes the square footage in the event a new HVAC or flooring system is installed.
In accordance with data provided by Homeguide.com, the average remodeling project begins around $20,000 at a small scale, with medium rates figuring close to $45,000 and premium remodeling costing just over $73,000.
Keep in mind that one may need to take on multiple projects to make the home livable.
Benefits of purchasing homes that require TLC
A home that needs TLC can provide a solid investment for a great bargain. Even when having to take into account the added fees needed for renovation, one may get a supreme deal on a TLC property if they are handy in completing some if not all of the upgrades alone.
Furthermore, TLC homes allow buyers to save significant money upfront whilst simultaneously allowing for improvements that suit preferences and tastes from the start. The new owner can truly make a space that fits their style and evolve it into the home of their vision.
Downsides of purchasing homes that require TLC
Unfortunately, as attention is often gravely needed, TLC homes are never ready to be lived in from the get-go. If a buyer is looking for a home they can move in quickly, it comes as no surprise to steer clear of listings under this category.
Another drawback includes the high cost of repairs. New carpets and paint jobs are negligible expenses. However, the more critical structural revisions will demand a licensed contractor (if the owner cannot DIY) to comply with building codes and zoning laws; all adding substantial fees to the initial investment of the property.
Also, avoid purchasing a TLC if the scope of needed repairs prevents living in the space for an excessive period of time while the work is to be completed. Paying for mortgage and rent adds financial strain while living elsewhere. If money is tight, simply pass on the home entirely.