How to Find a Fixer-Upper in San Antonio

Finding a fixer-upper in San Antonio can be an exciting and rewarding venture, whether you’re a first-time homebuyer looking to save money, an investor seeking a profitable renovation project, or someone with a passion for restoring homes. With a bit of patience, research, and strategy, you can find a property that offers both potential and value. Here’s a step-by-step guide to help you find the right fixer-upper in San Antonio.

1. Set Your Budget and Financing Options

Why It’s Important:
Understanding your budget and financing options is the first step in finding a fixer-upper. Renovation projects often involve unexpected expenses, so having a clear budget will keep you on track.

How to Set Your Budget:

• Calculate Your Total Budget: Factor in not only the cost of purchasing the property but also the estimated cost of renovations, repairs, and any additional fees, like permits or contractor costs.
• Get Pre-Approved for a Loan: If you need financing, get pre-approved for a mortgage. Consider specific loan programs like:
  • FHA 203(k) Loan: Allows you to finance both the purchase price and renovation costs.
  • HomeStyle Renovation Loan: A Fannie Mae program that lets you finance repairs and updates along with the home purchase.
  • Conventional Loans: These loans are ideal for smaller renovation projects that don’t require extensive rehab.

Pro Tip:
Set aside an extra 10-20% of your renovation budget for unexpected expenses, as many projects go over budget due to unforeseen issues.

2. Choose the Right Neighborhoods for Fixer-Uppers

Why It’s Important:
Some neighborhoods in San Antonio have more fixer-upper opportunities than others, offering better potential for return on investment.

Top Neighborhoods for Fixer-Uppers in San Antonio:

• Dignowity Hill: Located just east of downtown, this historic area is undergoing revitalization, making it ideal for finding affordable properties with great potential.
• Highland Park: Known for its historic homes and proximity to downtown, Highland Park is a popular spot for investors and homebuyers looking for renovation projects.
• Tobin Hill: This neighborhood is close to The Pearl and downtown, making it an appealing area for finding older homes that need updates.
• Beacon Hill and Alta Vista: These neighborhoods offer charming bungalows and historic homes that can be renovated for personal use or investment.
• East Side: This area has a mix of historic properties and newer development, offering a range of opportunities for those looking to restore older homes.

How to Choose a Neighborhood:

• Research Local Market Trends: Use online tools like Zillow, Redfin, or Realtor.com to track home values, recent sales, and market trends in your desired neighborhoods.
• Consider Future Growth: Look for areas with planned infrastructure improvements, new businesses, or rising home values, as these indicators suggest good investment potential.

3. Search for Fixer-Upper Listings Online

Why It’s Important:
Searching for fixer-uppers online allows you to quickly review a large number of properties and narrow down your options.

Top Websites for Finding Fixer-Uppers:

• Zillow and Redfin: Use filters like “fixer-upper,” “needs TLC,” or “as-is” to find homes that require renovations.
• Realtor.com: The site has specific filters for finding homes with renovation potential and foreclosures.
• Auction.com: Look for foreclosures and bank-owned properties that are often sold at lower prices but may require significant work.
• HAR.com: This site offers detailed property information and allows you to search for distressed or as-is properties in San Antonio.

Pro Tip:
Set up alerts for keywords like "as-is," "TLC," or "handyman special" to get notifications when new fixer-upper listings are posted.

4. Work with a Local Realtor Experienced in Fixer-Uppers

Why It’s Important:
A knowledgeable Realtor can be a valuable asset when searching for a fixer-upper, as they have access to off-market listings, distressed properties, and foreclosure sales.

What to Look for in a Realtor:

• Experience with Fixer-Uppers: Look for a Realtor who specializes in distressed properties and renovation projects. They’ll have insights into where to find good deals and can help you evaluate potential renovation costs.
• Local Market Knowledge: A local agent will know which neighborhoods are seeing growth and which properties have the best potential for appreciation after renovations.
• Negotiation Skills: Buying a fixer-upper often involves negotiating with sellers, banks, or auctioneers. An experienced agent can help you get the best price.

How to Find the Right Realtor:

• Ask for recommendations from friends or family members who have renovated homes in San Antonio.
• Check reviews and credentials online for agents with experience in buying and selling fixer-uppers.
• Schedule a consultation to discuss your goals and see if the agent understands your vision.

5. Attend Foreclosure Auctions and Tax Sales

Why It’s Important:
Foreclosure auctions and tax sales often offer properties at below-market prices, making them a good option for finding fixer-uppers with potential for profit.

How to Attend Auctions and Tax Sales:

• Foreclosure Auctions: Bexar County hosts regular foreclosure auctions, typically held on the first Tuesday of each month. You can find information about upcoming auctions on the Bexar County website.
• Tax Sales: Properties with unpaid taxes are often sold at tax sales. Research the Bexar County Tax Assessor-Collector’s website for dates and details.
• Bring Cash or Pre-Approved Financing: Some auctions require full payment at the time of purchase, while others may accept pre-approved loans.

Pro Tip:
Properties sold at auctions are usually sold “as-is,” so conduct as much research as possible on the property beforehand, including a drive-by inspection and reviewing available public records.

6. Consider Bank-Owned and REO Properties

Why It’s Important:
Bank-owned (REO) properties are foreclosed homes that have been repossessed by the bank. These properties are often sold below market value and may need significant repairs, making them ideal fixer-upper candidates.

How to Find REO Properties:

• Banks and Lenders: Contact local banks and lenders directly, as they often have lists of REO properties for sale.
• Real Estate Websites: Websites like RealtyTrac, Foreclosure.com, and Zillow also list REO properties available in San Antonio.
• HUD Homes: Check the HUD Home Store website for government-owned homes that are available for purchase at a discount.

7. Evaluate the Property's Condition

Why It’s Important:
Before making an offer on a fixer-upper, it’s crucial to assess the property’s condition to understand the scope of work required.

Key Areas to Inspect:

• Foundation and Structure: Check for cracks, uneven floors, and doors that don’t close properly, which can indicate foundation issues.
• Roof: Look for missing shingles, leaks, or sagging areas that may need repair or replacement.
• Plumbing and Electrical Systems: Inspect for leaks, outdated wiring, or signs of water damage.
• Mold and Pest Infestations: Check for signs of mold, termites, or other pest issues, which can require costly remediation.

Hire a Home Inspector:
A professional inspection can help identify major repairs needed, allowing you to make an informed decision and negotiate repairs or price reductions.

8. Make a Competitive Offer

Why It’s Important:
Fixer-uppers can attract multiple offers, especially in a competitive real estate market like San Antonio.

How to Make a Strong Offer:

• Offer a Quick Closing: Sellers of distressed properties often want to close quickly, so offering a faster closing timeline can make your offer more appealing.
• Include a Larger Earnest Money Deposit: Showing that you’re serious about the purchase can give you an edge over other buyers.
• Be Prepared to Offer Above Asking Price: If the property is in a high-demand area or priced below market value, you may need to offer above the asking price to secure it.

9. Plan for Renovations and Permits

Why It’s Important:
Successful renovation projects require careful planning, including permits, timelines, and contractor management.

How to Plan Renovations:

• Create a Detailed Budget: Prioritize critical repairs like structural issues, roof leaks, or electrical hazards before cosmetic updates.
• Hire Reputable Contractors: Look for licensed contractors experienced in renovating older homes in San Antonio.
• Get Necessary Permits: Check with the City of San Antonio’s Development Services Department to understand which permits are needed for your renovation project.

10. Consider Resale Value and Profit Potential

Why It’s Important:
Whether you’re renovating for personal use or as an investment, it’s crucial to consider the home’s resale value and potential profit after renovations.

How to Maximize Resale Value:

• Focus on high-ROI renovations like kitchen upgrades, bathroom remodels, and improving curb appeal.
• Choose materials and finishes that appeal to a broad range of buyers to increase the home’s marketability.
• Keep track of local real estate trends to set a competitive asking price when selling the renovated home.

Conclusion

Finding a fixer-upper in San Antonio can be a rewarding journey with the right strategy and preparation. By focusing on the right neighborhoods, understanding financing options, and carefully evaluating potential properties, you can find a home that aligns with your goals and budget.

If you're ready to start your search for a fixer-upper in San Antonio, reach out to Brad Burnes, a local Realtor experienced in identifying renovation opportunities. Brad can help you find the right property, guide you through the buying process, and connect you with reliable contractors. Contact Brad today to begin your journey toward finding a fixer-upper!