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It's no secret about the great profits to be reaped from buying homes in bad condition and fixing them up for resale. This may seem easy but its a time consuming, risky venture.

First you need to be able to distinguish a house as a potential profit, or a losing investment. Cosmetic repairs are usually inexpensive and pay back double their cost. However the expense of correcting any major structural problems might no raise the market value of the home, and you could end up in the negative on your investment.

The first thing you want to evaluate is the floor plan. A great layout with disastrous decor is the perfect combination for a fixer upper. These types of homes are turned around with minimal investment.

Check out all the major components of the home very thoroughly. Hire yourself an experienced architect if you plan a major renovation that includes moving walls. Always hire a professional inspector to check out any home before you make an offer.

The most important factor to the success of a fixer upper home is location. You need to buy in the best neighborhood you can afford, and make sure you don't over invest for your area.
Successful renovators use the lease option as a way to finance a fix up project. The buyer gives the seller a small amount of cash to use towards a predetermined purchase price and then leases the property from the seller. During this time the buyer fixes up the property.
When all work is complete, the buyer exercises the option, completes the purchase, and sells the property to another buyer for profit.

A home with a large structural pest control problem may be a good fixer upper, but its important to have a professional evaluate ahead of time what sot of work is necessary.

The curb appeal of a home is important for the resale. The first thing potential buyers see is the font of your home and yard. So plan on redoing the landscaping and front area of the home. When renovating always stick to neutral color schemes. Also, spend a little extra on less expensive home fixtures such as light fixtures, door knobs, cabinet knobs, and plumbing fixtures. Quality and detail build you a great reputation which is great if you plan to sell more properties in the neighborhood.

The best time for people to buy a fixer upper home is when the prices of homes are steadily climbing. There's substantially less risk involved if you're buying a fixer upper, and planning on living in it while you fix it up.

Keep in mind to look out for environmentally hazardous materials on the property. Hire a professional to come and double check before you even make an offer.

Any first time renovations should really make sure they are temperamentally table enough to handle a job like this. Renovation projects need to be closely supervised to keep them on budget. Renovators must pay attention to details, an ability to organize, and deal with any roadblocks calmly and efficiently.

About the Author: Published by Joe and Colleen Lane, Realtors®. The Lane Real Estate Team services Tri City Wa Real Estate, Kennewick Wa Real Estate, Pasco Wa Real Estate, Richland Wa Real Estate, and surrounding Southeastern Washington Communities.