Posted by Tony-VA/NC on August 01, 2003 at 19:21:36:
Construction costs are entirely irrelvant in determining value.
What the market will pay is what determines value when we sell. We as the investor/seller can enhance that value by creating financing terms that fit the buyer best.
On the “buy side”, value is determined by what we are able to negotiate. It is this skill, not production costs that determine price (or terms).
Fix up costs will vary. Are you going to do the work yourself? Are you going to hire a contractor? Will a handyman suffice? Can you do some of the work and hire out the rest?
Even the material cost will vary by your local access to parts (used and new).
When we buy and when we repair, it is our sense of what the market needs that determeines what the final terms of sale will bring (price or terms), not construction costs.