With rising home prices and low inventory, buyers finding a move-in-ready dream home has become a difficult task. Per data from NAR, more than half of prospective home buyers say they'd consider a fixer-upper. But do you have the vision and know-how to embark on the fixer-upper journey? A fixer-upper is truly not for everyone! But if you think you'd like to explore the option, Oak & Key can help!
The Allure of Fixer-Uppers
Fixer-upper homes come with a unique charm – the potential to transform a diamond in the rough into a gem. These properties often offer a lower upfront cost, providing an opportunity for buyers to customize and increase the home's value over time. But let's be clear, not every fixer is a good investment! Things like location and overall condition of the property will greatly affect your bottom line. Keep reading to learn more about this!
Assessing Your Budget
While fixer-uppers can be more affordable initially, it's crucial to have a realistic budget that accounts for both the purchase price and the anticipated renovation costs. Work with a lender to determine your financial capacity and obtain a pre-approval for a mortgage loan. There are many loan programs that can even work renovations costs into your mortgage. Creating a detailed renovation budget that includes a buffer for unforeseen expenses will help you know how much you will need to borrow, and tell you if your fixer is a sound financial decision.
Location, Location, Location
In real estate, location is key, and this holds true for fixer-uppers as well. Research neighborhoods with potential for growth, and assess the local amenities, schools, and infrastructure. A well-located fixer-upper not only offers personal benefits, but also ensures a better return on investment in the long run.
Professional Home Inspection
When you find a home with potential, invest in a comprehensive home inspection. A qualified inspector can identify potential issues such as structural problems, electrical issues, plumbing concerns, and more. This information is crucial for negotiating the purchase price and planning your renovation budget effectively.
How Can Oak & Key Help?
If the idea of buying a fixer-upper excites you, but you find yourself overwhelmed by the details, don't worry! An Oak & Key Agent is here to assist you. We can:
Connect you with reputable lenders offering renovation loan options
Guide you in discovering a fixer-upper with potential
Help you find inspectors and contractors who can assist you in determining renovation costs
Support you throughout the entire purchase process
If you think you'd like to explore the option of a fixer-upper, Contact Us Today! Your dream home transformation may be just a step away with our expert help!