Not all that many years ago, it was possible for you to purchase a property that was in need of repair, do a little bit of repair work to it and immediately sell it for a tidy profit. Since that time, however, the foreclosure market and the current economic situation has changed the rules about buying fixer uppers in many cases. That doesn’t mean, however, that it is not a good idea and if you’re smart about it, it is still possible to make quite a profit.
The first step in buying fixer uppers is finding them in the first place. There are plenty of homes that are available which could use a little bit of work, but in this market, you want to make sure that you are getting a home for as much under the current market value as possible. The easiest way for you to do this is to purchase homes that are either foreclosed upon or are in default and about to go through foreclosure. Often, you can purchase these homes at much less than market value and although you may have to bid on several in order to be successful, the rewards of doing so far outweigh the work that is involved.
Any foreclosure that is taking place or is about to take place becomes a matter of public record. You can search through these records in your local area but many people find this to be a time-consuming process, as it needs to be repeated frequently. It is much easier for you to be part of an online service which allows you to search for these distressed properties by county, state or zip code.
One other thing that you should be concerned about is the actual condition of the home. Buying fixer uppers that need a little bit of work is far different than buying one which has dilapidated beyond repair. Make sure that you have somebody that inspects the property and will guarantee the inspection before making your bid. It can save you a lot of headaches and money further down the line.