Here are some steps to take in order to properly determine if the fixer-house high that caught your eye describes a seal of approval or a thumb sign down:
"Location, Location, Location" is still the Mantra
It does not matter whether you are investing in an apartment, a condominium or, in this case, a luxury home. When it comes to real estate, the mantra you still have to recite to you is "location, location, location". Continue to base your decision on location factors: is it a corner lot? Is it near important institutions? Is it in a well-ordered or peaceful neighborhood?
Not all fixers are advertised as such. It is important that you do the most comprehensive research possible. Beside the engaging properties listed in the classifieds that fit your budget, drive around the city as well and be alert for the "for sale" signs stuck on poles. Let your friends and acquaintances know your interest in buying a house because they can point you in the right direction. Be sure to also consider the properties entered.
Hire an Inspector for a Day
If you have found a superior fastener that makes your wallet believe that he has found his soulmate, hire an inspector to accompany you for a house visit . Make sure you give him enough time to explore every inch of the house; this will allow him to give you a complete assessment and thorough evaluation of the property later.
How much do you plan to buy?
What is good with fixers is that these previously difficult conditions allow investors to buy them at a lower price than is customary. Experts however advise investors to buy fixations only up to 20% below their future market value (once everything has been renovated) and no more than that.
How much do you plan to spend?
Now that you've bought your dream investment, you can start making changes in the house. But first, plan each change carefully. Browse online for listings of contractors and have several contractors provide you with their estimates on the house. Check with appropriate agencies about zoning requirements and other laws that may affect your plans for the home.
How much are you planning to sell?
Now that all the repairs and renovations have been completed, you can finally calculate the probable sale price of the top-fixing once everything that needs to be repaired has been fixed. Again, keep in mind that top fix-homes are generally priced at affordable prices.
Finally, be ready to negotiate. Only billionaires tend to accept the initial purchase price of any article.