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Buy & Sell Fixer Upper Homes
Let the Experts Set the Right Price for Your Fixer-Upper Investment
Although buying a fixer-upper home allows you to spend less than
you would with any other home, you should remember that there are
more costs to spend in the future. You must also invest in house
repairs in order to turn your fixer-upper home into an ideal
haven.
Spending too much and setting too high a market price for your
home may very well cause you to lose – rather than earn – money
in the end.
How Formal is Formal?
Normally, a formal appraisal is conducted by a real estate agent. This appraisal may also include comparative analyses of other properties for sale in a particular price level. This can cost you $200-$400. Although a formal appraisal can provide you with pertinent information, there's more valuable information to be obtained from other forms of appraisals so why stop there?
Get a Real Estate Agent to View the House
Real estate agents will be able to provide you with key
information about the fixer-upper house you have your eye on. For
one, they’ll be able to tell you if it’s in a prime location and
what price range you can expect for a house in that area.
Secondly, he can also give you a comparative analysis on
fixer-uppers as well other types of homes that are in competition
with your prospective real estate property. Thirdly, he will be
able to provide you with a list of the attractive and
unattractive features of the house. Again, have a document drawn
up containing all his advice to make it official.
Talk to Your Financial or Bank Manager
Schedule an appointment with your financial adviser to talk about
your latest investment. If possible, give him a tour of the house
as well. Explain your situation and the need to spend more money
to fix the place up. Have your financial adviser draw up a
document that states the limit of your budget.
Meet with a Potential Contractor
A contractor is often hired to help and supervise renovations,
repairs and other changes made on a fixer-upper. If you already
know a contractor who can help you out, ask him as well to
accompany you for a brief tour of the house. Ask him to itemize
which parts of the house must be repaired, remodeled or renovated
and the estimated total cost.
The Verdict
When everything has been accomplished, study the documents the
experts have provided you with and the information staring back
at you will let you know if you’ve got a good – or bad-
fixer-upper on your hands.
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