How to Buy Fixer-Upper Homes

By administrator On February 7th, 2009

If you’re looking to purchase a home and do not have the budget to purchase your dream home in your dream locality, you should consider fixer homes, if you’re lucky and alert you could land a deal that will suit your budget and also get you residence in a good locality. Of course the catch here is the amount of fixing that the house requires; if you are comfortable doing at least the minimum to meet building codes and make the house habitable. If the location of the residence is good and the configuration is such that it will appeal to future buyers, you should consider it as a positive.

The bottomline in making a decision on purchasing a fixer upper is the amount of effort you are willing to put in dealing with contractors, giving time to obtaining the necessary codes, juggling work and remodeling, etc is worth the inexpensive home. Even if with all the remodeling plus cost of home, you do indeed make a saving, you still need to assess your own capabilities in getting all the repairs done.

The trick in appraising fixer upper homes is to be able to put a cost on it. You can do this by getting the house assessed for the amount of work necessary to make it livable for you. It could require a new roof, a bathroom overhaul, a paint job, and rewiring before it can fetch anything like its actual market rate. Once you have the actual market rate and the fixer upper rate, you have an ideal of the amount of money you need to put in to fix it. Factor in the costs that will accrue for the time of the repairs when you cannot stay in that house. Once you have factored in these costs plus your profit were you to sell the house, you have an idea of the fixer upper rate and you can negotiate with the owner or estate agent.

Bidding for a fixer upper does have certain advantages. You don’t have much competition; not everybody wants to buy a fixer upper and then there is the tremendous satisfaction to be had from working on a house and seeing the results for yourself. Keep in mind that your fixer upper can yield you handsome profits, in fact the profits start from the day you close a favorable deal in purchasing such a house.

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