Should I Consider a Fixer-Upper

There are two main reasons buyers look for fixer-uppers (rundown houses that usually sell for less because of their poor condition). The first is as an investment. The idea is that you'll go in, do the fix-up work, and sell for a profit. There's money to be made here.

The second is that a fixer-upper will sell for less in any given neighborhood. Hence, you might be able to get into the New Jersey neighborhood you want by buying a fixer-upper while otherwise you'd be excluded because of price.

Both reasons are valid. The most common problems with fixer-uppers is that the buyer, particularly the inexperienced buyer, underestimates the costs of repairs.