If you have the time and determination to fix all the problems in a house, you get a few fantastic perks that you deserve. Not only are you fixing the house, but you are raising the equity and improving the value of homes in the area by bringing one home up to standards. Here are the most notable advantages to buying a fixer upper home:
Reduced price. Some homes go on the market for a lower price because the seller doesn't want to do the extra work. Instead of taking their own time putting money into it, they would rather just list it for less and let the next person take on the work. Because the property is in such poor condition, you can sometimes offer well below the current market value. These are especially good deals if you buy a beat up home in a very good neighborhood where homes tend to sell for more.
Choose your own look. Buying a home that's already fixed up is nice, but it will never look exactly the way you want it to unless you design it yourself, install your type of cabinets, sinks, bath tubs, flooring, etc. You can take out non bearing walls and not worry about destroying the paint job because you will want to paint them a shade that you prefer anyway.
Create your own equity. You can buy the house for less than market value, which is 's what it's worth because it needs so much work. The real advantage comes with every improvement you make, big and small. As you make the house look better, equity will begin to rise up to market value and depending on how much you fix it up, it can be in the upper range of home prices in that area.
Qualify for a renovation loan. There are some types of financing that you can get to make improvements on a home, such as an FHA 203K loan. There are more loans that you can get when funds become available from the government, or other programs. Usually, they are offered to improve neighborhoods and increase property value. For many of these types of loans, you must reside in the property to qualify. Talk with an experienced lender to find out what loans you can get.
The satisfaction of doing it yourself. Taking a house in poor condition and turning it into something impressive is quite a great accomplishment and something you can take pride in every day.
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If you're interested in buying a fixer upper consider a 203k loan! Mike Young, the 203k expert, can help walk you through the process and answer any questions you may have. Call today for more info.