Six Signs a Fixer-Upper Home May Be Worth the Investment

December 08, 2010

As a potential homebuyer, you may be comfortable with the idea of buying a home that needs a little TLC. However, how do you tell a diamond-in-the-rough from a money pit? These six signs may be the first indicators that you've found your hidden gem.

The location is ideal.

Think like a realtor and realize that location is key in your selection process. Sometimes buying a fixer-upper is an ideal way to get into a top-notch neighborhood at a discounted price. As a general rule, a small home in a great neighborhood will sell for more than a large home in a so-so neighborhood. Do your homework about the neighborhood, including talking to residents in the area.

The home improvements needed are mostly simple cosmetic upgrades.

Your ability to see a home's true potential could get you a good deal on the selling price. Just make sure the home has been overlooked because of a less-than-sparkling exterior, not because the changes it needs are likely to bankrupt the buyer. You can probably handle replacing light fixtures or flooring, for example. Costs that can add up all too quickly include replacing appliances, plumbing, roofing, or electrical wiring.

The home isn't more than 50 years old.

Although historic homes are tempting for many buyers, older homes frequently have expensive problems. Plumbing, wiring, or foundation issues are much more likely in a home that is 100 years old compared to one that is under 50.

You like the layout.

One thing that isn't easy to rearrange is the basic floor plan of a home. Moving walls can be expensive and impractical. Better to find a floor plan you like as is, rather than pouring money into changing a home's basic layout.

There's plenty of natural light.

Lots of natural light can greatly add to your enjoyment of a home. You may think adding a window here or there would be simple, but zoning restrictions or structural issues might make that impossible. If there isn't a window where it looks like there should be, it's probably for a reason.

The experts agree with you.

Don't make this important decision alone. Most remodelers will visit a home free of charge and offer their opinion on problem areas, as well as a ballpark figure for repairs. A quality real estate agent can also offer invaluable perspective on the location and value.

Finally, don't make a final move without having a home inspector visit the property. A thorough examination is sometimes the deciding factor between a home that has too many costly problems and one that can be a dream home.

Related Searches home buying red flags steps to sell your home best home loan home mortgage refinancing new home loans home buyers market

Related Videos & Photos
	Stop and Relax in This Tres Chic Red Bathroom