Buying or Selling a Home/Build or Buy


I am coming into a decent inheritance (90000) in the near future. And I will be buying either a home or land in the greater New Orleans,La area. I was wandering what is better, buying a fixer upper(20000-40000) in a decent neighborhood or buying land in a better neighborhood (10000-15000) and build a home on that?


It's not a one-size fits all answer.   The answer is: What nets you the most equity?  

If I buy a fixer-upper for 25,000, put 25,000 in to it, and it is worth $75,000, then I have made 75,000 in equity.

If I buy a lot for 15,000, build a home for 35,000, and it is worth 75,000, then I have made 75,000 in equity.

Both assume what you have built or renovated is worth more than what you started with, but that is not always the case.   Many people do all the work for no equity, generally because they overpay for the house to renovate, overpay for the land, or underestimate the work involved.

Unless you are an experienced land developer or contractor, or have a superb agent in your target area, I would recommend buying a home in B condition, or C+ condition, with EASY TO FIX  things, for a good price.  That is the least risk, and the best protection for your money.  


Buying or Selling a Home

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Matt Heisler


I can answer questions about buying or selling your home, and questions about the market in Massachusetts, with detailed answers if you ask about my specific area in Mass, Metrowest. I can help with Investment property and the basics of financing. How to construct deals and how to find bargains and how to protect capital. Land, home sales, rehabs, fix and flips, income property are places where I could be able to assist you. I can also answer basic questions about foreclosure, short-sales, 1031 exchanges, and basic questions about how the economy and credit markets are functioning and how that affects you.


My company sells residential real estate in Metrowest, and we have had a been selling real estate in the area for 20 years. My Blog can be read at Real Estate Sales in Massachusetts

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