IDENTIFYING UNDERVALUED HOMES

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The prospect of identifying undervalued homes and fixing them up for resale can be an excellent investment opportunity. Areas like Palm Beach, Boca Raton, Ft. Lauderdale and Manalapan are brimming with properties that could use some tender loving care before finding the right buyer. But before you begin your adventure, be sure to make the right preparations.

First, the cost of buying undervalued homes does not end with the initial cost of the home. While the home may be selling for cheaper than its potential final value, you will still have to pay all the costs and fees associated with buying a home from insurance fees to documentation fees. But in this case, buying is the easy part.

More importantly, the cost to renovate the home will be substantial. Make sure to get the home properly inspected, and be sure to calculate how much the repairs and improvements will cost, as well as how long a renovation will take. The less time you can spend, the better your profit margins will be. Think of it this way – until you sell the home, you are essentially working for free. If your profit margin can’t cover your time and effort, is it worth it?

Lastly, make sure to take your time and not overreach. If you make several finds in popular communities like Wellington, Hypoluxo Island, and Hillsboro Mile, take your time to choose a property – even if it seems like a good deal at first – and don’t try to take on too much at once. One renovation project is enough to keep someone occupied, and the more you can focus, the smoother this process will go. Identifying undervalued homes in Palm Beach is just the beginning. See it through with your undivided attention, and you’ll learn to maximize your investment quickly and efficiently.

Annual Real Estate Trends | Be Aware of Extra Costs | Buying Your First Home | Buying vs. Renting | First Time Homebuyer Incentives | Home Buying Mistakes | Home Ownership Benefits | Home Purchase Pitfalls | How Much Home Can You Afford | Identifying Undervalued Homes | New Homes vs. Resale Property