Fixer-upper
A home that needs significant repairs or updates and is priced to reflect that. It can be a bargain, but repair costs and financing limits are easy to underestimate.
Also called: fixer, handyman special, TLC, needs work
Related terms
A sale where the seller will not make repairs. Buyers can usually still inspect, and seller disclosure duties still apply in most states.
Buying a property, renovating it and reselling it quickly for a profit. Profit depends on the purchase price, repair costs, holding costs and the after-repair value.
The estimated market value of a property once planned repairs are done. Flippers and hard money lenders use it to set offer prices and loan amounts.
Upkeep that has been put off, like old paint, worn roofs, or aging systems. It lowers value and adds to what a buyer will spend after moving in.
A visual check of a home's structure and systems by a trained inspector, usually during the buyer's contingency period. It finds problems before you're locked in; it is not a pass or fail test.