When it comes to buying a house, purchasing a fixer-upper is something many people consider. Whether or not it’s the right choice for you is something you need to determine according to your needs, desires, lifestyle, and budget. In order to help you make the best choice for unique situation, we’ve provided the pros and cons of buying a home that needs a little love.
By far, one of the greatest appeals of purchasing a fixer-upper house is the fact that the purchase price will be cheaper than a home that is move-in ready. If these potential savings are what are motivating you to buy a fixer-upper, make sure to take a hard look at how much renovations will cost to determine if it will truly be worth it.
You’re likely to end up with less competition since a lot of people are looking for homes they can move right into. Fixing up a house involves a lot of work that many people would rather avoid, making it less likely that you’ll find yourself in the middle of a bidding war and that much more likely that you’ll get a better price.
Buying a move-in ready home means that whatever the previous owners or builders felt was most important to invest in is what you’ll have to live with. But when you buy a home that needs renovations, you get to choose which aspects of the home you’ll put money toward. If a luxurious master bathroom or a big updated kitchen are the things that are most important to you, you get to make that call.
Renovating also means that you get to customize your home at a granular level. You have control over the final look and features of your home, and you can make unique customizations according to your own preferences.
If you research and plan correctly, you can enjoy a greater opportunity to increase your home’s value and make a profit when it’s time to sell by purchasing a fixer-upper. Make sure to consider which kinds of renovations or updates are most likely to provide the best returns. You’ll want to make sure you have a good idea of what the home and the remodeling will cost if you’re hoping to make that money back.
If there’s a certain neighborhood you’re interested in, you might have a better shot at finding an affordable and available fixer-upper than a house that doesn’t need updates in that area. This is also another thing to keep in mind when considering your investment as the neighborhood your home is a part of can make an impact on the price of your home when it’s time to sell.
It can be difficult to come up with an accurate budget for your remodel. The true cost of renovations isn’t always very clear, and there will always be unexpected costs.
Some renovations are more expensive than others. If the necessary or desired remodels are too costly, it might not be worth it to purchase a fixer-upper as this might lead to spending more on the house than one that didn’t need updates.
It’s almost a guarantee that unexpected issues will pop up during your renovations,especially when you’re dealing with an older home. Keep this in mind while budgeting and leave a little extra room for these kinds of surprise expenses.
If buying a fixer-upper is something you choose to do, make sure you’ve considered how you’ll finance the renovations. We offer convenient financing options specifically for renovation projects that are customizable to your needs, so contact us today and one of our Loan Originators will be happy to help you.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.