If you know what to expect and are prepared to handle the work, buying a fixer-upper can be a lucrative and rewarding purchase. But there are a few important things you should know before buying a home that will require this much work. Follow the tips below to get the best return on your investment from an auction.

What to Know Before Buying a Fixer-Upper at an Auction

1. Prioritize Location

As Chip and Joanna Gaines would tell you, a fixer-upper is all about buying the worst home in the best neighborhood. Buying a home in an undesirable or even average area likely won’t provide the returns that make it worthwhile. Before the auction, research factors such as neighborhood property values, crime rates, school ratings, neighborhood amenities, and average commute.

2. Make a Back-Up Plan

It’s impossible to predict the real estate market, so have a backup plan if you are hoping to flip the real estate listing. This ensures you won’t lose your investment if the market takes a bad turn. For example, you could research rental rates in the area to determine whether you could temporarily rent it, or plan to live in it yourself.

3. Vet Your Contractors

Know the limitations of your handyman abilities, so you hire a professional for the work you can’t trust yourself to accomplish. The right contractor will make all the difference in maximizing your budget and keeping you on schedule, so vet them thoroughly, Look them up on review sites, research their experience, and ask for a list of references to call so there won’t be any surprises.

When you’re ready to buy that fixer-upper, start your search at Greenways Real Estate & Auction with offices in White Sulfur Springs and Covington, VA. For more than 60 years, our family-owned and -operated auction company has been selling properties in the area with their large network of sellers. Take a look at our available properties on our website and call us at (540) 962-1155 with any questions about our auction process or listings. Let Greenway’s do it!