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Setting a Target Price
Do your homework
Before buying a fixer upper home, try to investigate the location, the kind of houses, and the market that you want to reach. Disregard your own ideas for a home. What you want for a home may not be the same for the market.
Research would mean getting the best location or comparing the price of a fixer upper home with the current value of the houses within the neighborhood. Ask the people in the neighborhood about the latest happenings in their area and investigate on the recent purchases of houses.
Don't limit yourself to question and answer portions. Try to delve more on the subject matter and get the details that you really need. In this way, you will be able to get a concrete explanation of why some people would rather have a certain house for a particular price compared to the others.
Seek minor repairs
Don't succumb to great looking houses that have structural problems. This will cut deeply into your profit margin.
It is better to consider fixer upper homes that only require cosmetic repairs. In this way, you can set a more reasonable target price.
Learn about...
The Right Time to Buy a House
1. Plan. Buying a house isn't like shopping for a TV. The house can be both an asset and a liability, depending on the circumstances. Thus, this must be properly planned.2. Talk to the rest of the family, especially to your spouse. A big chunk of the budget will definitely go to financing this purchase. There must be a consensus at home.3. Consider the reasons for wanting to buy a house. If it . . .