First, you should evaluate how much time, effort and money you would like to put into your new home.  For example, if you find a property that only needs cosmetic updating, you'll pay close to market price but you'll be able to move in right away. The time and money spent will be very minimal. But you may choose a property that needs major renovations. This may give you the benefit of a lower price tag, but you will need to put in considerable time, effort and money to increase the home's market value and turn it into your dream home.

Whether you decide on a property needing minor updates or major renovations, it's also important to look at the neighborhood.  Buying one of the least expensive homes in desirable neighborhood may result in the best resale potential. Be sure the purchase price of the home and the cost of renovations, when added together, do not "over-improve the home," moving it out of the neighborhood's price range.

A Realtor can give you insightful information on neighborhoods. Talk to an experienced agent.

Once you've determined which neighborhoods you wish to search, there are several questions to ask yourself when looking at a "fixer-upper." 

• How much money are you able to spend on renovations and repairs?
• What renovations can you do on your own and which will require a professional to complete?
• How long will the renovation take?
• Will you be able to live on the property during renovation or will you need to rent (and can you afford both your mortgage and rent)?
• Once the renovations are complete, will your finished home be comparable in value and amenities to other homes in the neighborhood, without being overvalued or over-improved for the neighborhood?

Begin your search for the property you could turn into your dream home. Sign onto PrudentialLocations.com today.

It's also important to check with your lender when considering a "fixer-upper" as some properties may not qualify for standard loan programs in their current condition. Some lenders may require higher priced construction or home improvement loans.

Finding the right property to suit your needs might not be easy.  But with some work and the help of an experienced agent, you can find what you are looking for. Perseverance, a clear understanding of your priorities, knowledge of current market values, and a sense of how much effort different types of renovation require all can give you the power to turn a "possibility" into a home that provides comfort, enhanced quality of life, and financial security.

Content sponsored by
Prudential Locations LLC.


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