Fixer Upper

Can you afford it? Affordability Estimator

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.

If you are interested in investing in this type of property put Diane Rogers to work.
Use her expertise in locating the area, locating the house and doing a market evaluation.