MN Foreclosed Properties, BUYING a FIXER UPPER - Is it Right for You?

By
Real Estate Agent with EXiT Three Rivers Realty

BUYING A FIXER UPPER - Is it Right for You? Let's Find Out! - MN Real Estate  

With foreclosures dominating the Minnesota housing market I am asked often about 'fixer uppers'. Our real estate market opens the door to amazing opportunities for home buyers in Minnesota. When buying a home you should be informed and confident in your decision.

If you are considering a 'fixer upper' you should take extra care to ask and find the answers to these key questions prior to making an offer on the home.

  1. Who will be doing the work? 
  2. How much will it cost you?
  3. Where will the money be coming from?
  4. Is the home price in line with how much the repairs are going to cost you? - Does it make sense?
  5. Do the repairs need to be done right away?
  6. Can you move into the home right away? or Will you have to pay for 2 places at one time?
  7. Will you have the extra money for any unexpected repairs?

 

If your answer to #1, is someone other then yourself then I would encourage you to be sure they will be assisting you. Far to many home buyers have been under the impression that family or friends will be helping them in fixing up their home to only be disappointed when they are unable to. This can be very costly and could force you to hire someone to do the work which may not have been in the original plan.  
 

Factors that effect the return on your investment:
  • The purchase price of the home
  • The cost of the repairs
  • The length of time that passes from purchasing, doing the repairs, and when you decide to sell the home
  • The market conditions at the time you decide to sell 
In January, 59.9% of the homes sold in the Twin Cities Metro area of Minnesota were lender mediated (meaning foreclosed or short sales - having bank involvement).  Earlier this month 63.4% of the homes listed on the MLS were lender mediated.  I share these Minnesota, real estate market statistics with you, because the odds are if you are looking to buy a home in today's market and a 'fixer upper' is what you seek, there should not be a shortage of them to chose from.
  
Useful Tools: 

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Tags:
mn real estate market
mn foreclosed properties
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Kimberly Koehler

Broker/Owner - EXiT 3 Rivers Realty 651-998-9811
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