There are many reasons to buy a fixer upper and many advantages to doing so. Many families who only look for a move in ready house miss out on the benefits of buying a home that is in need of repair. Here are some reasons why you may want to buy a fixer upper.
1- Afford Your Dream Neighborhood/ School District
Buying a home that needs renovating can allow you to buy into a pricier neighborhood. If you are willing to put in some elbow grease you can buy a home in your desired school district and neighborhood.
2- Afford a Bigger Home
Typically when you buy a fixer upper you can get more square footage for the money. Your house may have an additional bedroom and bathroom and still cost less than its move in ready counterpart.
3 – Negotiate a Deal
When it comes time to buy a fixer upper get ready to negotiate. Many sellers understand that they have a smaller pool of potential buyers to draw from. Most likely, they will be willing to entertain lower offers that are still reasonable to what the house is worth.
4 – Take Advantage of a 203k Loan
The affordable FHA 203k loan allows homeowners to buy a home and finance the renovations it needs all into their mortgage. There are many benefits to taking advantage of this loan. Homeowners can make renovations in a timely fashion without reducing their own cash reserves.
5 – Lower Mortgage Payment
When you buy a fixer upper you usually pay less for you home. This ultimately means a lower loan amount and of course a lower mortgage payment.
6 – Upgrade to Your Preferences
A great advantage to buying a fixer upper is having your home upgraded to you taste and design preferences. You can decide what types of tiles to use in the bathroom, or how you want the floor plan designed.
7 – Build Equity
After you’ve poured some TLC and attention in your home you should see a good rise in equity. By making sounds decisions during the renovation stage you can assure that your home value will rise to the rest of the houses in the neighborhood. It is always recommended to never buy the best house on the block, instead buy the home that can give you a great return on investment.
Buying a fixer upper can be a big undertaking and it may not be for everyone. Really think about if you want to make the commitment to renovating a home. Understand what extent of renovations you feel comfortable with.Remember that you can save a lot of money and build the equity in your home when you buy a fixer upper. Keep these items in mind while looking for your new place to call home.