Overland Park Real EstateBUYING A FIXER-UPPER
Some Overland Park real estate investors concentrate on buying fixer-uppers, making repairs and upgrades then selling for a profit. Going with a fixer-upper can also be a smart way for those who are handy to buy a home in a neighborhood that they might otherwise be unaffordable. Fixer-uppers are a wonderful opportunity for those who simply love to create their space to their own specifications but for whatever reason do not want to start with a vacant lot. If the idea of a fixer-upper appeals to you, here are some guidelines to keep your venture in the profit zone.
START WITH A THOROUGH HOME INSPECTION
Best to know the extent of the job and whether or not you are up to it before you buy. Some Overland Park real estate fixer-uppers simply need cosmetic work such as paint, wallpaper, carpeting and maybe kitchen appliances are fairly easy to estimate the costs for fixing. Homes that need minor structural repairs such as roofing are also fairly easy to cost estimate. However if a house needs major structural repairs it is best to have a contractor take a look at it before making an offer or make your offer subject to your contractor’s report.
HOW MUCH LESS SHOULD YOU PAY?
This, of course, depends on the condition of the home and the estimated cost of the repairs you must make. Overland Park real estate in a good neighborhood that is priced about 25% lower than others that are in good shape may be a good deal if it simply needs cosmetic or minor structural repairs. If the house is a gut job, that is the entire inside will be torn out and rebuilt the 25% rule may work and may not so estimate your costs as closely as possible.
LOOKING FOR A FIXER-UPPER?
Shopping by neighborhood makes good sense when considering the purchase of a fixer upper. As a buyer, the more you know about the homes in a particular area the better able you are when it comes time to judge whether or not a home your are considering meets the financial parameters you are looking for.
Finding the right fixer upper often involves finding a seller who is in financial difficulty and wants to sell in order to protect their credit or to avoid foreclosure. Various government agencies such as VA, HUD, IRS and others offer homes in foreclosure for sale and these homes can make excellent fixer-uppers. Bank owned properties known as REOs, real estate owned, offer good opportunities since financial institutions want to eliminate their real estate holdings by selling foreclosures quickly.
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