Given a little love and attention, a shabby fixer upper house could turn into your dream home over time. There are some exceptional deals to be found through foreclosure auctions. But be wary, and go in with your eyes wide open and feet firmly on the ground.

Fixer Uppers: Beauty Is in the Eye of the Beholder

It is all too easy to fall in love with a house, but you need to consider the real cost of your desired fixer upper home. Something that is merely cosmetic can be easily remedied, often quite cheaply. But if you discover you need to have to make serious structural improvements, then that's a different matter.

While foreclosure on properties can present some really good deals, especially at auction, you do need to bear in mind that somebody else has already run into trouble with this property. It is well worth getting a full structural survey to uncover any nasty surprises that may be lurking. If necessary, walk away and look at something else before you buy a costly fixer upper instead of your dream house.

What to Do When Buying a Fixer Upper House

• Do get a full structural survey
• Do work out your absolute limit, allowing at least 20% of the budget for repairs
• Do take a reliable friend with you to the auction to remind you of your limit
• Do look for a home that is in generally good repair that has only cosmetic issues
• Do go for the better location if you have a choice

What Not to Do When Buying a Fixer Upper House

• Don't be tempted by anything that needs extensive structural work
• Don't go in without doing your homework
• Don't buy at the first foreclosure auction you go to--visit several to get a feel of how they work

Finally, take it step by step. Don't knock yourself--or your finances--out by trying to get everything done at once.

About the Author
Sarah Christensen is greatly experienced in home improvements. Sarah graduated from King's College, University of London with a degree in Chemistry and Business Studies.