"Fixer-Uppers" come in all shapes and sizes -- from historic homes needing only minor repairs and updates to certifiable dumps that lack insulation, have mildewed bathrooms and leaky roofs. Every home buyer - but especially first-timers - must carefully consider the fixer-upper choice. Some are bargains but others are bottomless money pits in disguise.

Here a few rules-of-thumb to make informed decisions about a fixer-upper:

• Educate yourself between the too-good-to-be-true home listings and reality. A home may appear wonderful from the outside but a close look can reveal an expensive reality. Seek fixer-uppers with relatively inexpensive cosmetic problems such as outdated decor, old carpeting or peeling paint. Also, pay attention to floor plans and layouts - no closet space or a dysfunctional design can be as disheartening due to expensive and unexpected repairs.
• Pick a nice neighborhood. A good area will help support the value of the fixer-upper and the return on your money.
• Find out if the asking price of the fixer-upper is comparable with the prices of other homes in the neighborhood. If other nearby homes have been refurbished, see what they sold for.
• A bottomed out market is the time to grab a fixer-upper! This way, you minimize your risk of overpaying and can help offset improvement costs.
• Know up-front precisely what work is required to fix your prospective home. Calculate every dime-purchase costs, maintenance, building materials, labor, financing costs and your valuable time invested-to ensure that you've considered everything.
• Find a reputable home inspector. A general inspection, from crawl spaces to roof tops, should be part of any home purchase. There is always the possibility that the inspector can locate a significant problem that you may not notice. And if possible, be present at the inspection to see first hand the condition of the home.
• Try to get the seller to pay for all or part of the home improvement costs. After the inspection, you may be able to negotiate repairs with the seller by having them reduce the cost instead of making the required repairs.
• Get your lender involved. Your lender should know how much work will be required to fix your prospect home and if it can be done before or after closing.
• Inspect the general contractor who potentially will do the renovation. General contractors should be licensed, insured, financially stable, and not facing numerous consumer complaints. Talk to people who have had experience with the contractor, and view some of the work they have done.

If it isn't already apparent, careful research is the key to finding the right fixer-uppers. Take your time and work with reputable realtors, lenders, home inspectors and contractors. Most importantly, educate yourself! This will help you make the right decision on the best home for you!