Fixer Uppers
Throughout my time in Real Estate I've observed several individuals and couples who have done well with Fixer Uppers. They have purchased a house at a good price, made necessary upgrades and changes to the property and then cashed in at the end when re-selling the house, realizing a good profit. On the other hand, I've also noted several who haven't done so well and in street terms, they miserably failed and lost money. Why? Here is what I've discovered.
Some people may be inclined towards purchasing a home that needs some work. These kinds of individuals appreciate a challenge. They look at this endeavor as an opportunity to make money and they go for it. Here is the truth that everyone must deal with when considering a fixer upper.
Sometimes, a fixer-upper can be purchased below market value, and sufficient repairs can be made to bring it to a good sale condition with a profit realized. However NOT ALL fixer uppers will bring in the profits you might expect. It depends upon the price of the home, the amount of repairs needed and the market conditions at the time of sale. If the home is not priced low enough, you may not recover your investment of time, trouble and money.
Before you purchase what looks like a quick way to profit, carefully consider the condition of the home and ALL the repairs that need to be made. Get several estimates. Complete a comprehensive budget. Also, consult with your Realtor. Your Real Estate Professional can give you an idea of what you can reasonably expect to recover when the home is put back on the market.