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How to Recoup Your Investment on a Fixer-Upper Home

Greg has lived in the suburbs for 5 years. During this time, the family has moved 3 times with the home being much larger than the previous one.

Some friends think he won the lottery. Others speculate there was a huge inheritance from a wealthy relative. When Greg was asked how this was possible, the answer was simple, buy and sell.

The first home Greg purchased was a 3 bedroom house. It was built some time in the 40’s and the owners wanted to move into a retirement home. Given the price was reasonable, the deal was made.

When the real estate market in that area went up, Greg sold the home and bought a larger one for almost the same price as the old home a few years before. This has helped Greg finally get a two story home that was very near work and the school for the kids.

So, how does one recoup an investment on a fixer upper home? The first step will be to make some repairs. The plumbing, ventilation and roofing will need some work given the wear and tear throughout the years.

The next will be to renovate. The house may not have a playground in the backyard or the garden in front may need some improvement. These retouches which are small will pay off in the long term since it gives life to the home.

Repairs and renovations cost money. You should keep track of them so that when it is time to sell the home, you will know how much to sell it for.

The real estate market goes up and down. You can keep track of this by reading the newspaper and if the opportunity is right, perhaps it will be a good idea to consider selling.

You can advertise it in the classified ads of the newspaper, put a sign in front for passerby’s to see or sell through a real estate agent. If a buyer agrees and is willing to pay the price, you should close the deal.

Recouping the investment is easy. You should take into consideration how much was spent in buying the home, the cost for repairs and renovations and a few extra dollars to be able to make some profit.

You should remember to purchase a new home before deciding to accept an offer from another buyer. This will give you time to move in and tie up any lose ends.


About the Author: The above article was written by Sarah Miller on behalf of Home and Room Additions Contractors, an online homeowner resource and advice site on do-it-yourself home addition projects of all types.




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