Often determined to be residential properties that are below our standards, fixer-upper homes typically need mild to mid-level rehabilitation work to be viable for resale. To profit from these homes, buyers will typically have to give the home a thorough cleaning, minor repairs, interior and exterior painting, along with new flooring, appliances and landscaping.
Those who are willing to invest the time, money and energy into “flipping” these homes can often take pride in the accomplishment, but they can also turn a profit on the investment, should they decide to sell a newly fixed up home.
Buyers of fixer-uppers can often see the bigger picture, such as the beauty of the finished home, or the charm of the location. Sometimes, these types of homes will help improve neighborhoods and encourage others to do the same to similar properties.
However, if a property needing extensive repairs, such as new roofing, windows, major electrical work and plumbing, it could put the buyer in greater debt than the property is worth. While these homes can often be purchased at greater discounts, it’s usually because these types of repairs don’t show to the average homebuyer.
Couples who enjoy fixing-up houses, renovating and then occupying them for a time, often seek these types of properties. With tax-free incentives for those who have lived in fix-up houses for at least 24 months of ownership and occupancy, this can be a great way to earn money for the purchase of the couple’s next home.
Finding a fixer-upper isn’t that difficult and purchasing these properties usually doesn’t take much effort. Asking a realtor to show listings of these types of home can point people in the right direction.
Those who may be interested in tackling a fixer-upper property should look for neighborhoods that will be improved by the work. These houses are usually on the market because the seller cannot afford to pay for home repairs and considers the property more of an inconvenience. These property owners are often interested in selling the property with little hassle. Look for homes selling “as is.” Some sellers may have inherited a property and are looking for a quick cash sale. Known as probate properties, they can be sold through local probate court.
Homes that are tired may just need a little bit of elbow grease. Some TLC can make a home ready for reoccupation or resale. Make sure to contact the right realtor who knows the ins and outs of distressed homes to help you find the right fit.
Post by Alexis Hlady
