May 6, 2019
Fixer-Upper: Things to Consider Before You Buy
Home prices are rising and there are less and less entry-level housing options for new homebuyers which are creating a spike in the number of people willing to buy a fixer-upper.
With shows like Fixer Upper, Good Bones, Flip or Flop, and more, people are becoming more confident in their ability to obtain their dream home through renovations. Another movement giving courage to first-time homebuyers is the tiny house movement.
The tiny house movement shows people looking for entry-level housing that if it’s possible to build an entire house from scratch, then it’s certainly possible to breathe new life into an older house.
Buying a fixer-upper can be a great way to get a great deal on a house in the up and coming neighborhood that you aspire to be in. By buying a house that’s under the average property value in your area and giving it a little TLC, you just might uncover a diamond!
According to Dana Bull at RealEstate.com, before pulling the trigger on a fixer-upper, there are a few things you should consider.
How many projects are needed for your fixer-upper?
Bull says that you can generally get a good idea of how many projects will need to be done and an approximate cost by walking through the house with a trusted contractor. Once you get that estimate you have to decide if you’re willing and able to put that amount into it. It may mean you have to cut some things off your wish list to stay within budget. But money isn’t the only thing to think about.
Are you able and willing to handle the stress of a fixer-upper?
Any major project like this comes with some stress. It’s stressful to move in the first place, but add to that a number of major projects all with unknowns and possible unforeseen problems. It could make the perfect storm. If you think the reward is greater than the risk of stress, then there’s one final thing you need to look at.
Can we get financing for a fixer-upper project?
Many people find it difficult to get financing for fixer-upper projects, but luckily for you at Method Mortgage we offer renovation loans!
If you’re having a hard time finding the perfect home, buying a fixer-upper and creating the perfect home might be the right move for you, and a renovation loan from Method Mortgage can help! Contact us today and let us lead you to the smartest way home!