Fixer Upper Tips

Buying a basically sound house and updating the cosmetics is a profitable thing to do in almost any market but be careful what you buy or it may end up costing you later on.

Important Things to Consider:

1.  Buy homes that are at least 30 percent below market value of comparable nearby homes.

2.  You've heard it before but location with low crime rates, good schools and quiet streets are of utmost importance.   You can't fix a bad location.

3.  Choose a home with 3 to 4 bedrooms if at all possible.  Larger homes have greater buyer appeal.

4.  Avoid like the plague homes that need extensive major repairs like wiring, plumbing, foundation repairs and kitchen or bathroom renovations. Spending money on basics doesn't add value because buyers expect them.

5.  Look for homes that need cosmetic improvements like fresh paint, new light fixtures, carpet and flooring and good landscaping.

6.  Try to find affordable low down payment financing such as assuming a loan, leasing with an option to buy or owner financing.

7.  Avoid getting new bank financing until the work is completed and the home's market value has increased.

8.  Buy a home that is no more than an hour away from your current residence as you will need to be making frequent trips to oversee the renovation.

9.  Make sure the current tennants will be vacating the property immediately upon transfer of title.

10.  Look for motivated sellers who really want to make the deal happen.  Your agent can help determine their motivation.