FIXER UPPERS
- WHO BUYS FIXER UPPERS & WHY?
- Investors: look for properties in bad condition because they allow them to buy “Immediate Equity.” They pick up the property below “Fair Market Value”, fix it up and it either sell it or rent it out. It is their business and they generally know what they are doing.
- First time home buyers: look for fixer uppers because it gives them more buying power. They are often able to buy a larger home, or a home in a nicer area than would otherwise be the case. Unlike the “Investors” many “First Time Home Buyers” don’t know what to look for and can make mistakes.
- WHAT TO WATCH OUT FOR WHEN BUYING A FIXER UPPER!
- Location: Is the most important single factor in any home purchase. If in your efforts to get an affordable home you don’t pay enough attention to location factors you may well end up with a nice home, but a bad investment.
- Over Improvement: An investor knows exactly what improvements yield the optimal return. When making improvements he is careful not to over improve the property because he knows that if he does it will negatively impact his return. A First Time Home Buyer on the other hand has just purchased their dream home and they are all excited about fixing it up. As a result they often over improve the property or put money in improvements which have a poor return.
- How Can Total Solutions Realty Help?
- Larry Ballard (our Managing Broker/Owner) has been an investor for over 30 years. He knows how to pick the right property, in the right area, and he knows how to fix it up and get the optimal return on his investment. This knowledge and experience is passed along to our agents. As your Real Estate Agent we will give you the benefit of his 30 years of experience. More that that, he will teach you how to go to any city in the country and be able to find a home that will yield a higher return on investment than most homes in the area. In other words he will teach you how to find your dream home and how to make sure it is a prudent investment.