Every real estate property buyer dreams of landing a cheap fixer-upper, making a few repairs, and seeing the property's value go through the roof. You have to identify the right fixer-upper first if you want to have even the remotest chance of that happening. Here are some of the telltale signs that should tell you a fixer-upper is worth buying:
The Price Is Substantially Discounted
The idea of buying a fixer-upper is so that you can get it at a cheap price, fix the defects, and end up with a stunning house at a reasonable price. However, all this is only possible if you get the fixer-upper at a really cheap price. There is no use buying a derelict property at a $5,000 discount only for the repairs to cost as much as the discount, or more.
Therefore, find out what comparable, but not defective, houses are selling in the area. For example, if the roof is leaking, find out what comparable houses with sound roofs are fetching in the area. Only go ahead with the purchase if the difference is substantial.
You Can Do Some of the Repairs on Your Own
A fixer-upper may also be worth buying if you can handle all or most of the necessary repairs on your own and you have the time to do it. This will save you some labor costs and make the whole process cheaper. If you don't know whether you can handle a damage or not, err on the side of caution and assume that you can't do it; that would be safer than going ahead with the purchase only to find out that the fixing requires more than you can give.
Most of the Damage Is Cosmetic
This is one of the classic signs that a fixer-upper is worth purchasing. Defects that have only affected the aesthetics of the house, but not its safety or structural integrity, are easy to solve. For example, if the roof is extremely discolored, you cannot tell the siding's original color, and the home is generally unkempt, then there is no harm in buying.
You Don't Need the House Immediately
Lastly, you should also knot that it might take some time to get the house ready to live in. This may be a problem if you need a house you can move into immediately. Therefore, figure out how long the necessary repairs will take and whether you have that long. Of course, it can also be ideal if the necessary repairs are things that you can take care of while living in the house.