Foreclosure Facelifts, Restoring Value

Foreclosure Facelifts, Restoring Value

Wednesday, September 23 2009

KSAZ Fox 10

PHOENIX - Foreclosures are some of the hottest properties on the market right now. People can buy them for cheap, but most of the time, they need some work that can get expensive.

The cheapest shortcut is doing it yourself. But if DIY isn't for you, hiring a professional to split the work with you can help you bring your home up to code and make it more valuable.

New homeowner Tim Hammer isn't worried about the foreclosure he bought. The previous owners did some damage, took out all the kitchen cabinets and appliances, and kicked in the door.

The 4-bedroom, 2-story house cost him $95,000. And Hammer says a little paint and sweat will restore the home's value to about $130,000.

"Compared to what it was, it will be much more valuable and appealing, because the quality of it was just terrible," he says. If Hammer wants to resell it, he'll be making a profit.

"There are a lot of buyers who want to move into a property that does not need any work," says realtor Danny Israel. "Their willingness to make an offer and the amount they're willing to pay will be influenced on their perception on the amount of maintenance a property needs."

It helps that Hammer has had his own painting business, and is willing to do the work. But he says you should leave the complicated stuff to the professionals.