In your search for a new home, you may have come across a fixer upper or foreclosure that caught your eye. The low price tag is probably what stood out, but of course with that price tag come a number of other factors that you don’t have to consider when you’re buying a non-foreclosure/fixer upper. How much fixing up does the house need? Is it worth the investment? The answer to this question will be the crux of your decision whether or not to buy. Keep on reading to learn more about buying a fixer upper or foreclosure.
Thinking about buying a fixer upper? Buying a fixer upper gives you a few significant advantages over other property seekers and lots of options once the renovations are complete. Here are some of the benefits of buying a fixer upper.
A fairly high percentage of people who are on the market for a new home simply don’t consider fixer uppers as an option. They may be unwilling to make repairs or invest time into renovations. Either way, this means that there’s less competition for fixer uppers, making it easier for you to purchase one. Less competition also drives prices down, which means you’ll pay a lot less than you would for a new home.
Acquire Handy Skills
It’s up to you how much of the repairs you want to do yourself versus how much work you decide to contract out. For big repairs, you’ll probably want to hire contractors, but if you’re a handy type, you can easily take on small fixes. Learning how to do these kinds of repairs will help you if you decide to continue investing in fixer uppers in the future.
Now that the repairs are done, you have plenty of options to choose from. You can live in your new home, which you paid a lot less for than you would have for another home in the area. You can rent the home for positive cash flow. Or you can even sell the home for a profit. Buying low lets you keep all these options on the table. Overall, while many shun the idea of buying a fixer upper, it’s actually a great investment, and depending on what you decide to do with the property, you stand to make a very nice profit off your investment.
If you’re looking to invest in low-cost properties with lots of earning potential, we can help. Gray’s Home Solutions has properties of all types across the state of Maryland. Contact us for a full list of properties. Even if you’re not looking to buy right now, you can participate in our sellers referral program. Here’s how it works. Send us the phone number and property address for a For Sale By Owner or vacant property. We’ll take a look, and if we buy the property we’ll pay you $250 as a thank you for providing the lead.
Are you interested in learning more about selling your home fast? Our ebook has a ton of great information for you. We also have an ebook with information on how to avoid foreclosure, available for download here. They’re both free, so give them a look. You can also connect with Grays Home Solutions on Facebook, Twitter, Google+, and LinkedIn for more real estate made simple.