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Here are several steps to take in order to properly determine whether the fixer-upper house that has caught your attention deserves a seal of approval or a thumbs-down sign:

“Location, Location, Location” is Still the Mantra

It doesn’t matter if you’re investing in an apartment, a condominium unit or in this case, a fixer-upper home. When it comes to real estate property, the mantra you still have to recite to yourself is “location, location, location”. Continue to base your decision on location factors: Is it a corner lot? Is it near important establishments? Is it in a well-ordered or peaceful neighborhood?

Make a Thorough Search

Not all fixer-uppers are advertised as such. It’s important for you to make the most extensive search possible. Besides encircling properties listed in the classifieds that fit your budget, drive around the city as well and be alert for “For Sale” signs stuck on posts. Let your friends and acquaintances know about your interest in buying a house as they may be able to point you to the right direction. Be sure to consider foreclosed properties as well.

Hire an Inspector for a Day

If you’ve found a fixer-upper that makes your wallet feel it has found its soul mate, hire an inspector to accompany you for a tour of the house. Make sure that you give him sufficient time to explore every inch of the house; this will enable him to give you a full evaluation and a thorough appraisal of the property later on.

How Much Do You Plan Buying It For?

The great thing about fixer-uppers is that their presently distressed conditions enable investors to buy them for a lower price than what’s usual. Experts advise investors however to purchase fixer-uppers only up to 20% below its future market value (once everything has been renovated) and no more than that.

How Much Do You Plan on Spending?

Now that you’ve bought your dream investment, you can start making changes around the house. But first, plan each change thoroughly. Browse online for contractor listings and have several contractors provide you with their estimates on the house. Check with the appropriate agencies about zoning requirements and other laws that may affect your plans for the house.

How Much Do You Plan Selling It For?

Now that all repairs and remodeling have been completed, you can finally compute the probable selling price of the fixer-upper once everything that needs repairing has been fixed. Again, keep in mind that fixer-upper homes are usually priced at affordable rates.

Lastly, be ready to negotiate. Only billionaires tend to accept the initial purchasing price of any item.

About the Author: The above article was written by Sarah Miller on behalf of a buzzing online Home Improvement community where homeowners easily and painlessly find the right contractor for their home improvement projects and in turn, contractors can find the right Home Improvement Leads! Also check out the QuoteCity.com Blog for more related Home Improvement Articles and Ideas.