Secrets of the Ideal Fixer Upper

By Ugur Akinci, Ph.D.

What's the number one consideration in a fixer-upper? The LOCATION.

Fixer-uppers are properties that can be improved considerably with some repair. They are usually not in best shape but that's also their attraction and the reason why they're sold cheaper than comparable properties in the same neighborhood.

Fixer-uppers are especially ideal for people with carpentry, drywalling, masonry and other type of home-related skills. The more such buyers do the repairs themselves, the more money they'll save while restoring the unit to its former splendor.

What's the number one consideration in a fixer-upper? The LOCATION.

Why? For a very simple reason -- a house in a rundown neighborhood, or one close to a toxic dump site, will never amount to much even if it's fixed and polished to perfection. Because no matter how good it looks, people would still be reluctant to live in that kind of neighborhood.

A house in worse condition, on the other hand, will gain a lot more in equity after the same amount of repairs provided it's located in a better neighborhood.

Other factors that will help your fixer-upper rapidly gain value include availability of good schools within driving distance; proximity to major highways; presence of country clubs, universities and other prestigious institutions in the neighborhood, etc.