Buying A Fixer Upper

Unless you're buying a new home, there is always a chance that the house you're investing in will need a little TLC. It's always a good idea to understand the counterweights of pros and cons when it comes to investing in a fixer-upper. On the one hand, a sound investment in a fixer-upper home can yield a positive return when it comes time to sell it off, not to mention the cost you save up front when compared to a newer home. On the other hand, however, an uneducated purchase can leave you stuck in a money pit, causing you more stress than success and leaving you with empty pockets. But how do you know what to look for?

Let's say that you've found a prime piece of real estate, and you've got a good feeling this may be the place for you. The house has some issues, and you're concerned about how much you'll have to invest in renovations. Is it worth the risk, and if so, how do you know? It's very unwise to go on hunches when making an investment this large, so play it smart and turn to professionals. Bring in a home inspector (find here), consult a contractor or a professional home renovator, and get an informed opinion before you sign the papers on what you hope will be your dream home.

When you've taken the big plunge and bought your fixer-upper home, the next step is to, well, fix it up. Assuming you know where the problems lie, you'll have to come up with a game plan. The last thing you want to do is to start a project this big without knowing exactly where to start and what it will take and cost to finish. Too many people have ruined their homes by trying to renovate on their own without the tools and the know-how. Again, consult the professionals. You can save a lot of money doing it yourself, but if you don't know what you're doing, you're better off trusting someone who does it for a living.

Another important part of renovating a fixer upper is to know what works. The right design and construction can make even the plainest-exterior home look like high end properties on the inside, and that can mean a much higher return to you. Trusting a professional interior decorator is, again, always a good idea, but if you want to do it yourself, make sure to do your research. Not only can a properly renovated home look great, but it gives you a chance to improve the functionality and monthly cost of your home with investments in efficient heating, appliances, and lighting.

Though there is much to assess before investing in a fixer upper home, with the right vision, a sound investment plan, and the tools and knowledge to get the job done, what you earn in the end might just be the home of your dreams.