Sometimes, the house is located in a place that is undesirable; the property becomes virtually unsellable. An expressway is running overhead, a shopping center is too close, a landfill or a power plant nearby can make any seller lower the price of the house. Homes located in questionable locations lose a percent of their value.
A fixer-upper is a property that will require extra work (refurbishment, remaking or overhaul), however, it can be lived in as long as it passes all the proper inspections
Fixer-upper properties are ideal for buyers looking to raise the value of the home and potentially make a profit. A term also known as “flipping” is where a buyer finds a home, transforms it into a beautiful, livable, and upgraded property, then turns around and sells it for a pretty penny. Fixer-upper homes are also great for a young couple looking to make their first home purchase.
Without the proper knowledge or experience, you may think a particular fixer-upper home is a “great buy,” but you could be making a huge mistake if you don’t look at all the expenses in repairs that it may need. Structural and administration issues, and a home’s establishment or pipes, (which may not be noticeable initially) can require costly contracting work.