Have you made your wish list of all the things you crave in a new home?
If you have, you may wonder if there’s a home on earth that has all those features, at a price you can afford. Probably not, but in cases like this, it’s time to change the way you shop.
Start looking at ugly homes.
Surprised? Homes that need work, or “fixers” as they are called in the real estate industry, are the ideal choice for the picky homebuyer, and here’s why:
- They are less expensive than homes in move-in condition.
- There is typically less competition in the fixer market.
- You can customize the home to fit your home-buying wish list.
- You may be able to buy in a more expensive neighborhood, which will help boost the home’s value when it’s repaired.
- Financing options are quite attractive.
In some markets, buying a fixer can really be a game changer, bringing the typical single-family home into reach for a median-income household.
Shopping for a fixer
Shopping for a fixer-upper house for sale may be challenging at first. Remember, these homes are typically not very attractive so you’ll need to learn how to look at them in a different light.
Forget trying to picture yourself living in the home now – picture instead what the home will be like when you’ve transformed it.
The most important aspect of fixer-upper shopping is to find a floor plan that most closely fits your needs without having to knock down too many walls.
While removing a non-load-bearing wall may cost between $2,000 and $3,000, ripping out a load-bearing wall costs $1,200 to $3,000 for a single-story home.
If the home you purchase has more than one story that price jumps to between $3,200 and $10,000, according to the folks at HomeAdvisor.com.
As you can see, the floor plan is key when looking at fixers.
Two professionals you simply must have on your side when shopping in the fixer market include a real estate agent to help you negotiate and a contractor, for obvious reasons.
Financing the fixer-upper
Once you decide on a home, unless you’ll be paying cash for it and for the rehab work you’ll need to get financing.
Meet with a great Mortgage Broker in advance so you have a clear understanding of all of your closing costs. You should also have a ballpark quote from your Contractor for the reno. From there, your team can decide the best strategy for financing the project.
The process is complicated, we must warn you, but with the right contractor, mortgage broker and real estate agent, buying a fixer-upper property may just be the best investment you’ve ever made.
About the Author:
The above article on Still haven’t found your dream home? Consider a fixer-upper was provided by Regan Pyke, a leader in the field of sales, marketing, and Real Estate Investing. Regan can be reached via email at [email protected] or by phone at 778-228-2448.
Thinking of selling your home? I have a real passion for buying and selling Real Estate, as well as marketing & real estate investing. I’d love to share my expertise!