Have you been thinking about saving some money by buying a home that needs some fixup repairs?  You are not alone. "Sweat equity" is a time honored way for buyers to save money on a home purchase.  The idea is to find an home that is priced low because it needs some work.  Then do the work yourself to turn the home into something that will be all yours and worth more than you paid for the home.

It's not hard to find a home that is priced low, but needs some work - especially foreclosures!  Most foreclosures are sold "As Is", meaning that the bank or government entity that owns the property will make no repairs to the home.  If you have walked through a few foreclosures, then you know that the ones that are priced low often need major repairs before the home will be livable.  The repairs can range from simple cosmetics such as paint and carpet, to replacement of appliances and AC  systems, and even repairs to major structural components such as foundation and roof. Keep in mind that repairs to major structural and mechanical systems like the roof, slab, AC, etc., can be expensive and may not increase the value in proportion to the expense.  On the other hand, landscape, paint, and flooring can increase value much more than what they cost.

If finding a fixup is part of your home buying strategy, there are some questions you must answer.  The answers are absolutely essential if your are to avoid making what could be a very large financial mistake!

1. Do you have the time, skills and resources to do the work?  
2. How much will the repairs cost?
3. What will be the fair market value of the home once you finish the work?

Premier Team can help!  First, we can provide you with an estimate of what the Fair Market Value (FMV) of the home will be after you do the repairs.  Second, we know how to protect you by structuring your offer so that you will be able to fully investigate the needed repairs and how much they will cost before you are obligated to finalize the purchase. We are familiar with special loan programs that can save you money by allowing you to finance your repair costs.

Why not sit down with one of our specialists and get the full story?  

Jim Ivy

P.S., If you visit the "Free Stuff" link on the menu, you can download a very helpful tool that will give you some help in estimating repair costs.  Check it out.