Are you a handy man or woman who’s looking to invest some sweat equity in a new home? Or maybe you’re just not sure what to look for in a home or what your budget allows? Here are a few reasons why a fixer-upper home could be right for you.
Why a fixer-upper?
There are plenty of reasons why a person might prefer to buy a fixer-upper home versus one that doesn’t need improvement. Here are a few of our favorite reasons:
1. Cost efficiency – Fixer-upper homes offer a great opportunity to save yourself some serious money in the long-run. The home you’re purchasing may not be exactly how you want it today, or even immediately livable, but the price per square foot is likely much lower than a newer or turnkey home.
2. Charming locations – Often, older homes are in desirable older neighborhoods and/or urban areas. In addition to interior charming design elements like crown molding and original real brass fixtures, the home’s neighborhood could itself be a charmer with appealing features like mature trees and landscaping.
3. A shorter commute – Older neighborhoods are often closer to larger population centers. So, if you work in a city, a fixer-upper in the urban core could shorten your commute or even eliminate the need to drive to work.
4. Property tax rates – Fixer-upper homes in older, less affluent communities don’t see the same increases in property tax rates that newer, faster-growing communities do. Even after the cost of renovations, your home could still cost you much less over time.
5. Creative freedom! – One of the most appealing reasons people love to purchase fixer-upper homes is that they allow them the creative freedom to change and design their home however they please. If you like the idea of being the head of your own home’s construction project, buying a fixer-upper is a great way to do it.
6. Unique financing options – The FHA Streamlined 203(k) Rehab loan is designed for borrowers interested in rehabbing a property. By insuring a single, long-term, fixed-rate loan that covers both the acquisition and rehabilitation of a property, the loan saves borrowers time and money. It permits homebuyers and homeowners to finance up to $35,000 to complete qualifying improvements or repairs on their home, like replacing a roof or remodeling a kitchen.
Working to improve a home can be costly, unpredictable and take a long time. If you need to move in tomorrow and don’t want to work on a potentially long-term project, a fixer-upper may not be for you. If you’re not handy and don’t want to invest time, money and energy in improvements, a fixer-upper may not be for you.
Whether you’re looking to buy a fixer-upper or a newer home, your first step should be connecting with a HIP-accredited agent and HIP-qualified lender to take advantage of our Home Is Possible homebuying programs that provide you with bonus money and stretch your home purchase budget.