Buying a Fixer-Upper

hy do people buy fixer-uppers?

They're looking for a real estate investment: Buy a home that needs work, throw some time and money into it, and then sell it for a profit.

Fixer-uppers are a way to buy a home in a preferred neighborhood that may otherwise out of reach financially.

Fixer-uppers also allow buyers to create their own space. Most new homes are designed for the greatest common denominator. Fixing up an existing home allows you to personalize your living environment.

But be careful: A fixer-uppers can easily turn into a money pit, which is a nightmare for those homeowners on tight budgets.

And, fixer-uppers not only drain cash, but time.

Those home improvement TV shows in which a kitchen is magically transformed from a prison cell into a candidate for the pages of Architectural Digest are more fantasy than reality.

The truth is, shaping up a fixer-upper can take weeks or months, if not years. That's a lot of weekends spent with a tool belt strapped to your waist.