5. Check the cost of financing: Be sure you have enough money for a downpayment, closing costs, and repairs without draining your savings. If you’re planning to fund the repairs with a home equity or home improvement loan: Get yourself pre-approved for both loans before you make an offer. Make the deal contingent on getting both the purchase money loan and the renovation money loan,
6. Calculate your fair purchase offer: Take the fair market value of the property (what it would be worth if it were in good condition and remodeled to current tastes) and subtract the upgrade and repair costs.
7. Include inspection contingencies in your offer: Don’t rely on your friends or your contractor to eyeball your fixer-upper house. Hire pros to do common inspections like: get a home inspection, Home inspection. This is key in a fixer-upper assessment.