Buying a Fixer Upper- Have a Plan! You CAN do this!
There’s a saying in the real estate industry that we should give up buying the nicest home in a bad or borderline neighborhood and go for a less desirable home in a better neighborhood we can afford. This is because the sales prices surrounding homes determine the market value of yours, so buying in a more desirable neighborhood, even if it’s the worst home on the block, ensures the future value of your home.
This may mean that you are purchasing a home with problems, from minimal to horrendous. Does that scare you? It shouldn’t. Read on to learn how a fixer upper house may just turn into your dream home.
Yes, you can afford to fix it! Even buyers on the tightest of budgets can afford the repairs required to fix up a home so that it’s livable. Talk to your lender about obtaining a FHA 203(k) loan. This government-backed loan program is geared toward buyers that intend on living in the home and it may have additional requirements; your lender can go over those with you.
If you qualify, you may be able to wrap the cost of the repairs into the mortgage and your first payment may not be due until you actually move into the house. It’s an amazing program that the buyer can use to put on a new roof, new plumbing, floors, landscaping and more.
Only certain lenders are qualified to offer the program, and you can find these on the U.S. Department of Housing and Urban Development’s (HUD) website. Ensure that you tick the box next to “203k,” at the bottom of the list.
Things to remember when diving into the fixer- up pool:
- Work with a lender that knows your needs and your goals
- Add a professional REALTOR®®like myself that has helped fixer up purchases
- Get a home inspection- know what you are walking into
- Look in the community for resources! Places like Habitat for Humanity Restores is a great place to find building material and appliances, and some local paint stores even sell discounted paint so what if it’s one shade lighter than you wanted you just save $60 on 10 gallons of paint!
- Take advantage of rebates at your local utility company you need a thermostat anyway, why not get one for free from the power with a rebate?
- Contact the Energy Trust of Oregon to see how they can help with your replacement or upgrade energy type items in the home.
Don’t let ratty carpets, ugly paint colors or shoddy decorating turn you away. Buying a fixer means that you’re getting a home with possibilities ― at a price you can afford. Remember, as long as you love the community – you can make the house a home.
We’ve moved! Our new location is @ The Round in Beaverton (4145 SW Watson Suite 350). Contact us today for a free property evaluation. We are here help you buy a house to make a home. For more information, contact Lita at 971-341-4491 or visit www.yourrealtygroup.com.
