See, one of the problems with buying a fixer upper as an investor is not every investor has the ability to pay all cash for these homes. Many take out mortgage loans to finance the purchase. So while they are making repairs, they are also making mortgage payments on an empty house.
Home buyers, on the other hand, have the option of living in the house while they are fixing it up. Owner occupants can take their time doing repairs; not everything needs to be completed at once, and rooms can be tackled one by one until the home is finished. A great benefit is the fact that home buyers can create living environments just the way they want it -- painting the walls in colors of their own choosing, selecting their own grade of floor coverings and types of appliances -- the home can be customized to suit their individual needs and tastes.
The caveat emptor in this situation is the fact that remodeling can become addictive. Lots of home buyers find when they are finished and there is nothing left to do, they feel like they must sell and buy another home to fix up . . . read more about Fixer Uppers.
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©2007 Elizabeth Weintraub
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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.