Serena Russell ~ Bay Area Real Estate Specialist

Property Investment

Good Home vs. The Fixer-Upper

There are several types of properties today. However, most homeowners are undecided in terms of purchasing a new property or a fixer-upper property. Other than finding an agent and a lender, you need to decide on the type of property you want to get. Some find it better to purchase a new property. However, there are also those who find it more convenient to purchase a fixer-upper home.

The decision relies on you and your circumstances. You have to consider several factors before you decide.

People don’t just buy houses to live in them. Many people also look to buy investment properties, or homes from which they wish to eventually profit. One of the most profitable ways to do that is to purchase a fixer-upper–a house that is in need of repair.

Fixer-Upper Strategy

Fixer-upper houses are houses that need a little work to increase in value. Real estate investors that purchase fixer-uppers tend to get houses that are not in condemned status or require a major repair, such as replacing an entire house’s worth of plumbing. Instead, they look for homes that are located in nice areas but need aesthetic upgrades. Or they may purchase fixer-uppers that are nearby expanding neighborhoods, hoping to repair the home by the time the property values rise. This practice is referred to as flipping a house. Fixer-uppers can become more profitable if the homes can be restored within a short amount of time relative to the purchase.

Fixer-Upper Homes

There are also advantages of buying a fixer-upper home. First, it is inexpensive. This means that you can save a lot. This is great if you are on a tight budget. Next, you can personalize your property. This is because you can renovate and fix the property. You have to be cautious though. Most of these properties need a lot of work and you might not be able to move right away unless you make the essential repairs immediately.

You have to be concerned with the amount you will spend on repairs and renovations. This can be expensive especially if you have not checked the house before purchasing it. To avoid this, see to it that you inspect the property first together with a contractor. The contractor can help assess how much you need to spend on the property for the needed repairs.

Deciding on what to purchase is important. The first thing you need to consider is your budget. Your price range can be a constraint in purchasing a new home. Your plan is also a factor. If you intend to sell the house after a few years, then purchasing a new home is a great idea. A fixer-upper home is also a good investment. Just see to it that you check the house first so that you will know how much it would cost to fix the property.

If the real estate investor does the work himself, he can save even more money since he won’t have to hire contractors to work on the fixer-upper.

For more and free foreclosures and how to buy low and sell high, contact me at your earliest. We offer home buyer seminars on a monthly basis; providing free materials and information to the general public.

My office is local.  We service home buyers, home sellers, renters & investors.  Come on in today for your FREE consultation.

Serena 510-303-2549