Princeton Town Topics – Let’s Talk Real Estate – May 19, 2010
THE “FIXER-UPPER”
Most buyers want a home that is in tip-top condition and ready for them to occupy, but many homes go for lower prices because they need work. Whether you are buying the property for yourself or as an investment, choose a “fixer-upper” that is in a good location and structurally sound. It should be priced enough below market value to allow for a profitable re-sale after the work is completed.
Inexpensive cosmetic improvements often give the greatest return– paint will increase the value three times for every dollar invested. Landscaping, carpeting, and light fixtures are other affordable improvements. Expensive structural improvements, such as a new roof, plumbing, or wiring usually do not add as much to the market value of a home. Remodeling a kitchen will rarely add more than the cost, but new appliances usually give a fine return. An updated bathroom is the best renovation from an investment point of view. It is important to talk to your Realtor before making any significant improvements.
