Fixer
Upper
:
Can you afford it? Affordability
Estimator Mortgage
Comparison
The
first question is what exactly is a fixer-upper? A fixer-upper
is a house that has been poorly maintained and has a lower
market value than other houses in the immediate area. The
second question is where are these houses? You can find distressed
properties or fixer-uppers in most communities, even healthier
neighbourhoods.
Deciding
whether a fixer upper is a wise investment takes some work.
You need to figure what the average house in a given area
sells for, as well as what the most desirable houses in that
area are like and what they cost. This is where a real estate
agent will be of great service to you.
If you
take this route you should try to find a "cosmetic fixer"
that can be completely refurbished with paint, wallpaper,
new floor and window coverings, landscaping and new appliances.
You should avoid run-down houses that need major structural
repairs. A house price that looks too good to be true probably
is. A smart buyer will find out why before buying it.
The smart
move is to find the least desirable house in the most desirable
neighbourhood, and then decide if the expenses needed to bring
the value of that property up to its full potential market
value are within your budget.
Most recently,
the highest remodeling paybacks have come from updating kitchens
and baths, home office additions and extra amenities in older
homes. While home offices are a relatively new remodeling
trend, for example, you could expect to recoup 58 percent
of the cost of adding a home office, according to the survey.
