Should I Buy a Fixer-Upper or Move-In Ready Home?

Fixer-Upper or Move-In Ready?

When deciding to buy a home, many people ask, “Should buy a fixer-upper or a move-in ready home?” There are a few factors one needs to consider when making this decision.

Move-In Ready Homes

If you have been following the Austin housing market, you may not be surprised to learn Austin-Round Rock MSA soared 37% while the median price jumped 42% according to Austin Board of Realtors. As a home buyer, this may have caused a more challenging market to find the perfect dream home.

Of course, a move-in ready home is desirable for many reasons. Move-in ready homes are less expensive to maintain because this usually translates in to a home that has updated plumbing, appliances and so on. Additionally, you will be able to move in right away in most cases after closing assuming your contract and your needs allow for this option.

The main disadvantage in our current market is that there is a huge demand for this kind of home and as a result, prices are potentially higher than what you may have in mind for your home purchase budget. This is when considering a fixer-upper over a turn-key solution will expand your options.

Fixer-Upper

Oftentimes, a buyer may be motivated to purchase a fixer upper in order to save money.  These days, the inventory of move-in ready homes is low. This can be another appealing reason to consider a fixer-upper. Buying or refinancing older properties in longstanding neighborhoods can have some advantages. Many of these homes may come with one or two needs for example, a kitchen in need some updates or updated bathrooms. These homes take a home buyer with vision and the flexibility to finance their way to turning an old home in to their dream home. However, a buyer needs to factor in the cost of renovation. In addition to cost of renovation, one has to consider time and flexibility.

There are many ways that customers can benefit from these opportunities. A longtime owner might pay for a bedroom remodeling as he refinances. A bargain hunter or investor might finance the restoration of a structure to a higher standard. Wherever a homeowner can imagine something better, a home renovation loan is there for you.

Most renovation loans have fixed rate and adjustable rate opportunities on an array of conventional mortgages that meet certain targets. Some are used to fix or upgrade the structure. Others focus on cosmetic upgrades, such as remodeling. The areas of improvement must be attached to the structure and add value. Possible renovations include:

• Interior renovations like updating lighting, cabinets, etc…
• Exterior renovations such as new siding or paint
• Fences
• Decks
• Landscaping
• In-ground pools

There are eligibility rules based on size and other factors. To learn more about whether one can help you, please contact Joel Richardson and ask how you might be able to use a purchase renovation loan.