Fixer Upper: Advantages and Disadvantages of Buying one

Published: 29th September 2009
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Fixer upper property is a real estate term that is not commonly used in most of its business dealings. If you are a first time buyer, you will certainly question what this type of property is when your agent would say this to one of your conversations. Fixer upper homes are those that need major repair and renovation because of their actual bad condition. It is in fact depends on the judgment of the buyer but fixing the house may still rely from minor aesthetic improvement in the house or major structural remodeling or renovation.

Fixer upper houses are not considered as the ideal option for buyers who simply want to own a house of there own. Majority of them, as well as the investors, who opt to buyer fixer upper homes do not really plan to stay in such property as their main residence. But instead, they are just investing on which they can develop and improve to make more income in the long run.

The advantages of buying fixer upper houses are a bit comprehensive, depending on the main reason of the buyer or the real estate agent. But there are common advantages that fixer upper homes that buyers can still get to enjoy.

Since these properties have not been totally at their best condition, you can expect to have a big discount on their prices. You are assured to be paying lesser compared to buying a regular house. Thus, if you have limited budget, then getting a fixer upper home is the best choice for you.

It is one of your main responsibilities, as a buyer, to check on the location of the house before you make the sale. Fixer upper homes can only guarantee you to give enough income when they are located in areas that are escalating their value. Even if you have made all your effort to renovate your fixer upper house, if it is still situated in a less pleasing and declining area, your market value is still lower than the average and you are not secured to acquire profitability from your investment.

Fixer upper buyers must not forget that knowledge and experience are important to successfully manage their properties. Once you possess these qualities you will be able to properly handle your fixer upper house. These qualities will also help you in your future business endeavors.

But you can not avoid the fact the disadvantages will also come running after those who invested on the said properties. It is unavoidable that you will need a huge amount of money if you want to make such business last long. There is a high risk involve in terms of the result if the house will be sold according to how you expected it. And if you will be able to obtain the projected profit as you go along. It may not sound very attractive and practical, but investors of these types of properties think beyond the fact there is no enough comfort you can get out of fixer upper homes. It is simply a home purchase. Most of these investors have come up with long term investment plans set in their minds, and just waiting for the right time to perform everything.

Looking for more nice fixer upper homes for sale? Check these sites Fixer Upper Homes in Greater Phoenix, Fixer Upper Homes in Sun City AZ and Fixer Upper Houses for Sale in Sun City West AZ.

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