You made the decision to buy a house. Now, you have to decide whether to buy a lived-in property, a new home, or a fixer-upper. Here’s why buying one instead of a new or lived-in home is a great option.
A fixer-upper can save you money.
Most sellers prepare their homes for the market by painting the walls and updating the kitchen, restroom, and flooring to make them “move-in ready.” These costs are added to the price of the home. Many buyers prefer going that route because they don’t have to spend a dime once they move into their home. Because fixer-uppers aren’t “move-in ready” and need to compete with the market, sellers lower their asking price. This can save buyers up to 30% on the home relative to the other homes in the neighborhood. This means more cash stays with the buyer.
A Fixer-Upper can increase in value once the buyer puts some love into the house.
One of the opportunities that arise in real estate is Flipping. Buying a fixer-upper allows the buyer to fix the home and sell it for a profit.
You don’t need a special license to flip a home. Anyone can do it. If you buy a fixer-upper to resell, keep in mind the cost vs. value and how much you can recoup after making the changes. For a more detailed report on cost vs. value based on your state, click here.
A Fixer-Upper can increase in value once the buyer puts some love into the house.
A move-in ready doesn’t need anything done into the house. But a fixer-upper can become your piece of art! You don’t have to settle for the beige, gray, or white walls. Change the kitchen countertops if you want to. Hate the restroom tiles? you can change it! You can make it your own style and give it your own signature look.
Which Fixer-Upper to avoid.
Experts agree it’s better to buy a home that needs cosmetic improvements than one that needs structural work. Think plumbing, foundation, and electrical wiring, to name a few. These can become expensive and are most likely not covered by insurance.
Buying a fixer-upper can save you money, help you start investing, and give you the satisfaction of seeing your vision for the house come alive! A realtor can help you decide whether the fixer-upper is an excellent opportunity. Remember, there is a house out there for everyone. Best wishes on your home search!
If you are looking for a realtor in Houston and its surrounding area, contact me here!