PRICE FOR A FIXER UPPER VS A HOUSE ALREADY FIXED UP.

This mornings question is "What is the difference in price from a home that was repaired versus a home that needs work that is being sold as is?" It comes from the responses of buyers who were looking at bank owned homes, the most common response is "It needed too much work".

WHO PRICED THESE HOMES?

When pricing a home whether bank owned or owned by a private seller, that homes value is assessed using size, condition, neighborhood and amenities or upgrades in that home. It is only natural that a house that needs more work would be priced much less than a home that was repaired, remodeled or does not need any work. It is frustrating when people look at a bank owned home and they respond "this needs alot of work" the common response most agents would love to respond with is that is why it is priced half of what  the house up the road that is all fixed up is priced at.

"Fixer Uppers" are one term these houses are known as. There are different types of work though, there is th high priced items such as roof, windows, siding, electric, plumbing and heating systems. this work requires buyers to have cash to pay someone to make the repairs or have the ability to make the repairs themselves. This type of home is uaually prices the lowest, sometimes you can obtain a conventional or fha mortgage due to the anount of work needed. these houses are being snapped up as soon as they hot the market by investors.

The other type of "fixer upper" is a home that is structurally sound but needs paint and carpets. This is known as cosmetic fixes. Most commonly the homes smells of pet urine and scares most buyers before they even enter, this opens up incredible deals for those buyers who can see or smell past the cosmetics and for a small investment, can get an incredible deal.

In conclusion, if you are a buyer, know your limits. you shoudl assess for yourself how much work if any you want to complete or can pay to complete. if you can not or dont want to make any repairs, you probaily should not be looking at houses that need any work. If you are looking for the greatest deal, than a fixer upper is for you. You should have the house inspected and  get projected estiomates of cost before making your offer so you know what you should be paying for that house.


Thank you for taking the time to read my blog, Please feel free to add your opinion of when you think is the best time of year to purchase a house.


Updated Oct. 5, 2010

Blog Written by:

Scott Godzyk