Buying a fixer upper can offer a very profitable outcome but if you are not careful, it can be a huge financial mis-step.  

Many first time home buyers are attracted to fixers as an entry into an otherwise unafforable market or neighborhood.  Others look at it as a fast way to make a buck.  But those times are largely gone.  We are in a shifting market that has mostly shifted to being a buyers market.

Whether you are a first time buyer or seasoned buyer, you should seriously consider if you are well suited to the task before you buy.  It can take longer and cost more than anticipated and please consider your experience level.  What can you do yourself?  Do you have a network of contractors to help get the job done?  Would your time be spent more profitably in your regular job?

If you are buying a fixer to enter an area you could otherwise not afford, consider how long you will be living there.  What you pay for the home, plus improvement and selling costs compared to the end value without considering appreciation if it is within 3 years.  Remember, the market is largely flat right now.  Any market appreciation will be bonus to you.  But don't count on it.  If you are looking at a longer stay, then the price you pay is less important as appreciation will naturally return on some level and there is a value in life style for you. 

For the fix and flip, the price you pay is very important.  Your improvement estimates, hugely important.  Get multiple estimates and don't rush.  Increasingly there are bargains to be had but they are still far and between the norm.  There is a new book out by Gary Keller called Flip.  I highly recomend it. 

Ultimately, buyers these days are looking for a home with the least amount of work.  They will pay up for it as the traditional family model has changed largely to include to full time working parents.  Family time is precious.  You should consult a reputable Realtor in your area for values and improvement ideas.  After-all, they know your market, hot trends and your potential competition. 

 If you are in the Fairfield County market which includes the towns of Greenwich, Stamford, New Canaan, and Darien, call me.  I'd be happy to consult with you free of charge to help you make the most profitable decision.  You can view my current listings at Http://www.homesoffairfieldcounty.com.

 Victoria Lorusso