It may by now be a cliche´, but location is the key to finding a fixer upper. Homes in good locations increase in value more quickly and hold their value when the market is down. Most importantly, you’ll be able to build equity for a down payment when you move up. The best sources for finding good deals are the classified ads, word of mouth, the Multiple Listing Service (MLS), and foreclosure sales. And you must become an expert on home values in the areas you’re interested in, so that you can move quickly when a deal from one of these sources pops up.
Networking in your area of choice, especially with knowledgeable and reputable realtors, is a great way to find out about estate sales or houses being unloaded by divorcing couples. Through their computerized MLS system, realtors can also keep you informed instantly of homes coming on the market.
Ron and Ellen bought their first home this way. They had been looking in an area near a small college for several months when a realtor they had been working with called. He was putting a three bedroom bungalow on the market later on in the day that was part of an estate settlement. The heirs wanted a quick, as-is sale and were willing to deal.
The home was in good condition but was dated. The wallpaper had to go, and the wood trim had several layers of paint. But it was exactly what Ron and Ellen were looking for. They made an offer for about $20,000 under market value with no contingencies and a quick closing. Their offer was accepted.
The keys to success in this case were the homebuyers doing their homework on what areas to zero in on, getting their financial ducks in a row so that they could move quickly, and having a willingness to do some messy fix-up work.
In this case, they steamed off the old wallpaper and painted the walls, removed layers of old paint, and restored the wood trim. Ron and Ellen also resanded and refinished the wood floors. It was hard work, but when they were through, the result was stunning. Their next project, when they save more money, is to update the kitchen and bathrooms. That should bring the home’s value up to the neighborhood average. With the area becoming more trendy, this home will appreciate and yield a nice profit in a few years, when Ron and Ellen are ready to move up.
Networking in your area of choice, especially with knowledgeable and reputable realtors, is a great way to find out about estate sales or houses being unloaded by divorcing couples. Through their computerized MLS system, realtors can also keep you informed instantly of homes coming on the market.
Ron and Ellen bought their first home this way. They had been looking in an area near a small college for several months when a realtor they had been working with called. He was putting a three bedroom bungalow on the market later on in the day that was part of an estate settlement. The heirs wanted a quick, as-is sale and were willing to deal.
The home was in good condition but was dated. The wallpaper had to go, and the wood trim had several layers of paint. But it was exactly what Ron and Ellen were looking for. They made an offer for about $20,000 under market value with no contingencies and a quick closing. Their offer was accepted.
The keys to success in this case were the homebuyers doing their homework on what areas to zero in on, getting their financial ducks in a row so that they could move quickly, and having a willingness to do some messy fix-up work.
In this case, they steamed off the old wallpaper and painted the walls, removed layers of old paint, and restored the wood trim. Ron and Ellen also resanded and refinished the wood floors. It was hard work, but when they were through, the result was stunning. Their next project, when they save more money, is to update the kitchen and bathrooms. That should bring the home’s value up to the neighborhood average. With the area becoming more trendy, this home will appreciate and yield a nice profit in a few years, when Ron and Ellen are ready to move up.
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