YARDLEY, PA, Jun 30, 2015—Whether you're a first time buyer or searching for your second or third spot, purchasing a fixer upper—a house in need of some good TLC—is often a tempting option. They're often moderately priced, and offer an abundance of opportunities for customization. But are they a solid investment? Below, Wes Foster, Founder & CEO of Long & Foster Real Estate gives us a rundown on purchasing a home in need of a makeover.
“Fixer uppers are literally everywhere, even in wealthy enclaves,” explains Foster. “What sets them apart is price.” These homes have a lower market value than other houses in the immediate area because they have either been poorly maintained or, in some cases, abandoned.
To determine whether or not a property that interests you is a wise investment will require a lot of work. “You will need to figure out what the average home in the area sells for, as well as the cost of the most desirable ones,” says Foster.
If you're a newbie homeowner with minimal experience in property value, it may be in your best interest to avoid run-down properties needing extensive work. Instead, Foster recommends, consider starting with a property that only needs minor cosmetic work – one that can be completely refurbished with paint, wallpaper, new floor and window coverings, landscaping, and new appliances.
“Keep in mind that a home price that looks too good to be true probably is,” says Foster. “Find out why before pouring your hard-earned money into it.”
When looking for a fixer-upper, Foster suggests you follow this basis strategy: find the least desirable home in the most desirable neighborhood. Then decide if the expense that is needed to repair the property is within your budget.
For more refinance information, please contact Long & Foster Real Estate at firstname.lastname@example.org, 1-877-221-1776, or Long & Foster Real Estate.