What is a Fixer-Upper Home?
A fixer-upper home is a home that requires some repairs. Fixer-upper homes may be advertised as “Handyman Specials.” The type of work needed may be cosmetic or deep and it is up to the buyer to assess the estimated repair costs to see if purchasing the fixer-upper home will be a good investment or a bad one. Location is important even if the fixer-upper home buyer has carefully estimated that repairing the home will be a good investment. If it’s the worst looking home in a great area, fixing it up will help it sell and raise its value. But, if a fixer-upper is located in a less desirable or declining neighborhood, it would still sell for less in prime condition because of the area. Look for fixer-upper homes in neighborhoods where home prices are appreciating in value. Find out the prices of regular homes, not fixer-uppers, in a good area and then compare those prices to the cost of the fixer-upper home you’re considering purchasing. You can try to speak to the home owners in the area
