If you ask smart investors the type of property they want to buy
, many of them will tell you that they want a cheap property that they can fix at a low cost and sell for a huge profit. Buying and selling a fixer upper house is the trend in the real estate foreclosure investment market. This is because the risks are avoidable and profits are immeasurable.
Foreclosed properties are the best fixer upper properties to have. They are very cheap, with many selling at below 50 percent of their current market value, and are in conditions that require only minor patch-ups to make them as good as new.
Advantages of Buying a Fixer Upper House:
The trick to achieve a profit when selling a fixer upper home is to buy the property cheaply and spend a reasonable amount to fix it. The perfect fixer upper home is one that everybody wants to fix but only few people could see past the imperfections of the property. Sagging ceiling, worn carpets, peeling paint are just some features of a fixer upper property that can be easily fixed at a less cost.
Fixer upper properties are available at lower prices and can be resold for a huge profit. Furthermore, there is less competition in the market as many people do not want to buy a house that they still need to fix up, regardless if the repair is only superficial. And just imagine the personal satisfaction that you will get if you have completed repairing the property and be able to sell it immediately for a huge profit.
What to Consider When Buying a Fixer Upper House:
The first thing to consider is the location of the property. Keep in mind that location is one of the factors that will determine if a property will be sold immediately. Look out for properties in desirable neighborhoods, with less crime and accessible to transportation.
Another factor is the condition of the property. It would be smart to hire a home inspector to give you a professional opinion on the real condition of the fixer upper home as well as provide you with estimated repair costs.
Buying and selling a fixer upper house is a good way to grow your money as long as you take time to know the market and identify challenges to overcome.