The Secret Charm of Fixer Uppers

by Peter Vernon on Foreclosures

Somehow buyers get away with purchasing fixer upper homes whatever the market conditions may be. Mostly because some buyers have their own special reasons for purchasing this type of distressed property. Some buyers purchase fixer uppers to fulfill a desire to build a home almost from scratch and incorporate their personal style into it. The price of a run down home is definitely lower than buying a vacant lot and materials for a brand new home. This is also a great way to venture into real estate investing, by starting with one property and building a business from there.

What to Look for in a Good Fixer Upper

Your choice of fixer uppers to renovate can spell success or disaster in this endeavor. There are a lot of fixer upper homes that still maintain a solid foundation free from termite infestations and with only minor damages on electrical and plumbing. These are the ones you like.

The amazingly low price of this home can get give you the needed cash boost for repairs and renovation. This means you can bring the property in an inhabitable state in no time. Consider the location of the property, it would be best if there are not so many other foreclosures in the neighborhood because this situation tends to bring down the value of homes even more.

There are minor and major types of rehabilitation that buyers must know about. Minor repairs refer to patching up walls, floor finishing, broken windows and door know replacements, as well as painting the walls. Major rehabilitation refers to overhauling the heating, ventilation and air conditioning system of the property, laying new pipes and electrical lines, flooring and roofing.

A licensed home inspector is your best friend when buying fixer uppers. They can point out whether the damages are minor or major. They can also give you a ballpark figure on the cost of renovation. Some sellers may be open to absorbing home inspection costs. If you do conduct your own, make sure to include your findings in the price negotiations. Make sure you do your homework on the inner workings of foreclosures before making any commitments.

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