fixer upper home there is certainly some risk involved

By
Real Estate Agent with Re/Max 10 New Lenox Illinois

Lisa Hare a respected colleague in Florida shares when purchasing a fixer upper home there is certainly some risk involved, but for many, the benefits far exceed the risks. There are several things to consider first, some positive and some negative.

Things to Consider When Buying A Fixer Upper 

Anytime that you purchase a home, whether it needs love or if it is move-in ready, you already need to be considering the resale of that home, no matter what your plans for the future might be. This will better enable you to make the right choices at the right time. Making good buying choices will help you make good selling choices later, and you wouldn’t want to make a purchase that will not return your investment plus a profit later.

The Perks 

The price of a house that needs some attention is one of the main draws behind purchasing a fixer upper. A large number of buyers are looking for something that is move-in ready so the competition for fixer-upper properties won’t be as high. Many people are not willing to look beyond a building’s flaws to see its amazing potential, and sometimes you can find killer deals on overlooked homes because of some torn up carpet and a few broken windows. There is also the ultimate advantage of being able to transform the home with your own ideas and visions, giving it the character you’ve always wanted in a home without spending a fortune.

The Downsides 

Since the price of many fixer uppers seem so affordable up front, many people focus on “today’s costs” and don’t think about the costs of tomorrow. While many common issues with fixer uppers are relatively inexpensive to solve, some are not. Painting, replacing carpet or adding a deck are pretty affordable, while replacing HVAC systems or re-roofing can get pricey. Having inspections performed by professionals is never a bad idea before you buy, but make sure you look for experienced inspectors, as they are not regulated by state.

Location, Location, Location 

It stands true no matter how you look at it. Location is the first thing to consider when purchasing any home whether it’s move-in ready or a fixer upper. Buyers will be more interested in appealing neighborhoods, than the character of the home. Fixer uppers in nice neighborhoods that are owner friendly will always sell more successfully than those that are close to industrial areas, or less accessible to schools, and other necessities. Take the neighborhood’s growth into account when you purchase as well. If it is in an area where new housing developments are being built there will be a lot of buyers in the area in the future.

Layout 

Consider the layout of the home carefully. What are its biggest selling points? Buyers that have small children may not want to purchase a home where the bedrooms are too far away from one another. Also, consider the size of the home. Buyers looking for a certain size home may buy something larger, but rarely buy something smaller that what they had in mind. Kitchens that have more than one entrance are a selling point, as is homes that open to a common room with multiple entrances.

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fixer upper home there is certainly some risk involved

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Rainmaker
156,304
Carolyn Kolba
Serving Mentor, and all of Lake County, Ohio - Mentor, OH
Keller Williams Realty- Mentor, Ohio

Rob in #1... it appears that you and I are reading many of the same blog posts tonight.  I have a question for you.  Tonight I have seen you leaving the exact same comment over and over and over again on people's blog posts.  After awhile... it really looks kinda silly.  Just what do you "get" from doing that ?

Just my two cents.

Feb 25, 2012 01:52 PM #2
Rainmaker
156,304
Carolyn Kolba
Serving Mentor, and all of Lake County, Ohio - Mentor, OH
Keller Williams Realty- Mentor, Ohio

Dale:  Buying fixer-uppers can be a very tricky business.  I have seen a few folks really get surprised... and negatively so... when they bought what they thought was an "easy" fixer-upper... only to find it ended up costing them so much more than they thought at first.  Makes me nervous.

Good post...

Feb 25, 2012 01:54 PM #3
Rainmaker
1,020,471
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I grew up in a home where my father purchased fixers and made them into beautiful homes.  So I know the suprises and the up side of the increased value.

Feb 25, 2012 02:14 PM #4
Rainmaker
233,475
Dale Taylor
Re/Max 10 New Lenox Illinois - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

Thanks for all your comments.  I grew up in a home where my Dad loved to buy cars and fix them up.  I can remember a time when I had my pick of 4 different cars to drive as a teenager.  Your comments just brought back that memory I had nearly forgotten.  Again thanks!

Feb 25, 2012 02:59 PM #5
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Rainmaker
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Dale Taylor

Realtor = Chicago Illinois Homes Townhomes Condos
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