This term has become so heavily used in real estate anymore, you have to wonder if there are still homes for sale that aren't "fixer-uppers". There are, but that is for another topic headline - the fixer uppers in today's market offer a great value to those buyers that aren't afraid to get their hands dirty and visit The Home Depot on a regular basis.
What constitutes a fixer-upper?
Well, any home that is not in move-in condition for the general populace would fit into this category. Determining the amount of work necessary to move in is where you really have to be thorough and have an experienced Realtor on your side. If your agent is pushing you to buy in areas that generally do not offer higher returns or in areas that generally have excessive market times....get a new agent! In these instances, the agent is working for themselves and not for you! Another common mistake made by those that buy fixer uppers with the intent to rehab and re-sell is that the craftsman/buyer knows more about what home buyers want than does a quality Realtor. Be coachable Mr Fix-it - don't go into this venture thinking you have all the answers - you may just have a terrific resource at your disposal if you ask the agent selling you the home, what they think needs to be done in order to re-sell at a reasonable price and in a short period of time. Make a teammate of your Realtor, you will reap the benefits later!
If you are buying a fixer upper as an owner occupied property, there are a number of programs available to assist you in the area of rehab funding. We, with the help of Andover Bank and a number of other lenders have placed many families into homes that need to be rehabbed before they can move in. Call us - we have done the legwork, we know how to work through the 203k loans as well as the construction/rehab loans. It's a great time to be a buyer - don't miss out while prices are low and interest rates are at record-low levels!