A home that needs work likely will be less expensive. Such properties rarely list at full market price. Buying a fixer-upper house is, without a doubt, cheaper than purchasing a ready-to-go home. Since no two houses are the same, it’s hard to do a true, apples-to-apples comparison as to just how much money you’d save, but be warned that your savings may not be as high as you think.
Many buyers are unwilling or unable to put a lot of work into a house. This creates the perfect opportunity to catch a bargain, a major advantage welcomed in particular by first-time homebuyers or house hunters competing for homes in areas with low inventory.
With a fixer-upper, you call the shots as to how the house will eventually look. You don’t have to settle for a home that reflects someone else’s taste. Plus, if you do some of the work yourself, you’re automatically awarded bragging rights.
If you renovate the home shortly after you buy it, you may increase its value quickly. Equity provides many financial benefits, from raising your personal net worth to giving you an opportunity to refinance sooner, if needed. In some of the most desirable neighborhoods in every city, the streets are lined with perfectly manicured beautiful homes. Like a postcard for blissful living, they are what everyone wants. They’re in high demand and short supply and the prices reflect as much. At what almost seems like a predictable interval, you’ll see an odd duck. A house with a messed-up yard, peeling paint and 40-year-old burglar bars on the 80-year-old windows. It’s nestled neatly between two pristine slices of paradise. On the left and the right, you can buy for $800K, or, if you’ve got what it takes, you can take the plunge and go for the odd duck in the middle at the bargain basement price of $400K.
Ask your lender about the Federal Housing Administration’s 203k loans that provide homeowners with funds specifically for fixer-upper projects. The loans, the 203k Streamlined Mortgage and the full 203k Mortgage, are available for homes with needs ranging from cosmetic improvements to extensive structural work.
eXp Realty—The Results Team—is ready to help you buy or sell your home! Stop on by our location at 2623 N. Walnut St, Bloomington, IN 47404. Or call us at: (812)822-2746.