Do’s and Don’ts of Buying a Fixer-Upper

• Get a list of recent home sales and statistics from a real estate broker on the area you’re interested in. Note if the values are going up or down and how long it’s taking homes to sell.
• With the help of a contractor, check out the property as much as possible and determine the fix-up costs. Get written bids on work you can’t do yourself.
• Here’s where the rubber meets the road. You have to be honest about whether you have the time and expertise for what needs to be done. Make a list of what you can do and what you’ll need to hire out. Get those bids in hand and add in the cost of the materials for what you plan to do yourself. Add that total to the cost of the home. How does the total cost compare to the projected market value when you’re finished?
• If possible, make any offers contingent on a professional home inspection. This will cost you about $300, but it’ll be worth it if it saves you from an expensive mistake. If the report comes back with surprises, you can use it to renegotiate the price to cover repair of the ‘‘surprises.’’