Here are several steps to take in order to properly determine whether
the fixer-upper house that has caught your attention deserves a seal
of approval or a thumbs-down sign:
=93Location, Location, Location=94 is Still the Mantra
It doesn=92t matter if you=92re investing in an apartment, a condominium
unit or in this case, a fixer-upper home. When it comes to real estate
property, the mantra you still have to recite to yourself is
=93location, location, location=94. Continue to base your decision on
location factors: Is it a corner lot? Is it near im****tant
establishments? Is it in a well-ordered or peaceful neighborhood?
Make a Thorough Search
Not all fixer-uppers are advertised as such. It=92s im****tant for you to
make the most extensive search possible. Besides encircling properties
listed in the classifieds that fit your budget, drive around the city
as well and be alert for =93For Sale=94 signs stuck on posts. Let your
friends and acquaintances know about your interest in buying a house
as they may be able to point you to the right direction. Be sure to
consider foreclosed properties as well.
Hire an Inspector for a Day
If you=92ve found a fixer-upper that makes your wallet feel it has found
its soul mate, hire an inspector to accompany you for a tour of the
house. Make sure that you give him sufficient time to explore every
inch of the house; this will enable him to give you a full evaluation
and a thorough appraisal of the property later on.
How Much Do You Plan Buying It For?
The great thing about fixer-uppers is that their presently distressed
conditions enable investors to buy them for a lower price than what=92s
usual. Experts advise investors however to purchase fixer-uppers only
up to 20% below its future market value (once everything has been
renovated) and no more than that.
How Much Do You Plan on Spending?
Now that you=92ve bought your dream investment, you can start making
changes around the house. But first, plan each change thoroughly.
Browse online for contractor listings and have several contractors
provide you with their estimates on the house. Check with the
appropriate agencies about zoning requirements and other laws that may
affect your plans for the house.
How Much Do You Plan Selling It For?
Now that all repairs and remodeling have been completed, you can
finally compute the probable selling price of the fixer-upper once
everything that needs repairing has been fixed. Again, keep in mind
that fixer-upper homes are usually priced at affordable rates.
Lastly, be ready to negotiate. Only billionaires tend to accept the
initial purchasing price of any item.
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