As the volume of new and resale house and condominium sales gradually slows down in most communities from last year’s record levels, due primarily to rising mortgage interest rates, savvy home buyers are rediscovering a source of bargain-priced residences known as “[tag]fixer uppers[/tag].” Retail sellers of homes in excellent condition, including brand-new houses, expect to earn top dollar for their “model home” condition residences. But in today’s market that has become difficult.

Experienced [tag]real estate investors[/tag] recommend buying a property “with the right things wrong.” That means buying a house or condominium where well-spent fix-up dollars will add more market value than the cost. Fresh paint, inside and outside, is known as the most profitable home improvement you can make. Virtually every house can benefit from new paint, especially when exterior paint gives a house a new look. For example, my neighbor has owned her house since it was built more than 40 years ago. It was painted an ugly barn-red with white trim. All of a sudden, last year, she had her house painted a very attractive off-white with light-brown trim. Perhaps it cost $2,500 to paint the house, but I estimate the “new look” added at least $10,000 in market value.

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