Having experience in real estate and construction makes me ponder this question… Knock down or repair?

You see the ads: Handy man special, Needs some TLC, Bring your tools. Well if that catches your eye than you will be willing to put in the sweat equity to enjoy the fruits of your labor. Those fruits may be born in the increased value in a property you keep or in the return on the sale of your
fixer upper. I would recommend looking at the current values in the neighborhood to see if a repair, major renovation or even a knock down will make the resulting cost justifiable for the area. This theory can be applied in most residential neighborhoods and as a rule someone looking to sell eventually doesn’t want to be the most expensive home on the street. The law of diminishing return (spending more than you can get back) goes out the window when location is the key. Water front or ski slope frontage are prime examples, we have been involved in many projects where the location, view or lack of any other acceptable alternative drives a property owner to pulling out all the stops.

If you feel that the scarcity of a prime location justifies what ever expense you are prepared to spend than by all means “go for it”.

Ask a real estate professional who knows the market to help you make that important buying decision.