CHANTILLY, VA, Jan 19, 2017—Determining the value of a home is often a complicated process, as you weigh comparable homes, renovations, square footage and more. However, when a home is distressed or a “fixer-upper,” the process can be even more convoluted.
“To determine if a property that interests you is a wise investment will require a lot of work,” says Scott MacDonald, President of RE/MAX Gateway. 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.
“One of the best ways is to get your hands on a comparable market analyses,” says MacDonald. See what price similar properties have sold for in the past and find out the listing price of others currently on the market.
It is important to examine the fixer-upper carefully and figure out how much it will cost to fix any defects or repairs. “If you are unable to get in, talk with nearby neighbors about the home’s condition,” suggests MacDonald.
You can also do your own cost comparison by researching comparable properties recorded at the local county recorder's and assessor's offices, or at Internet sites specializing in property records.
“If the property is in foreclosure, you should get as much information as possible from the lender,” says MacDonald.
So now you know the value of that distressed property. Should you buy it? Experts suggest that novices avoid run-down properties needing extensive work, like a new foundation and roof. Instead, they recommend 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.
For more information on buying a home, please contact RE/MAX Gateway at firstname.lastname@example.org, 703-652-5777, or RE/MAX Gateway.
RE/MAX Gateway is an award winning real estate company serving Northern Virginia and the DC Metro area with five office locations. Agents are licensed in Virginia, Washington, D.C., and Maryland.