What is a Fixer-Upper? Ahmed Nashaat Explains

While buying and renovating fixer-upper homes has increased in popularity due to dozens of fix-and-flip home improvement TV shows, not everyone is cut out for major renovation projects. 

According to Ahmed Nashaat, buying a fixer-upper involves purchasing the least desirable home on the block and overseeing its repairs. Whether considering a fixer-upper as an investment or fixing up a home you want to live in, there's a lot to consider before buying, from home price to construction costs to financing. 

What is a fixer-upper home?

A fixer-upper is a house needing repairs, but not so many that it's uninhabitable. Fixer-uppers are usually offered lower prices than homes in good condition, making them appealing to buyers looking to maximize their purchasing power or investors looking to flip the property and earn some money. 

People typically buy fixer-upper homes because the cost of purchasing the home plus renovation may total less than what they'd pay for a comparable property in better condition. Ahmed Nashaat gives some of the key reasons buyers decide on buying a fixer-upper:

Reduced price.

Suppose you have your eye on a good neighborhood for resale value or your lifestyle. In that case, you can get a better deal buying a fixer-upper in your desired location and renovating it than purchasing a built home.

Customizable improvements.

When you purchase a fixer-upper, the sky's the limit regarding finishes and fixtures (within your budget). Renovating a fixer-upper can be ideal for buyers with specific tastes or those who want control over the aesthetics of their home. When buying a fixer-upper, you avoid paying for the renovations someone else completed, especially if you don't like them, adds Ahmed Nashaat.

Make a profit.
Whether you plan to live in the house for a few years or flip it immediately, you can profit from your renovations. Your return on investment depends on the quality of the work and the materials you use, says Ahmed Nashaat. If profit is the goal, select popular home improvements in your market to increase property value and attract various buyers.