Buying a fixer-upper: 5 things to know
Last updated 10/8/2021 at 5:23pm
Special to the Village News
In today's busy market, many homebuyers have found themselves weighing options they would normally pass by. One of the more common compromises is to consider a home that needs some work. On the 'flip-side,' fixer-uppers often come with lower prices, less competition and a lower-pressure sale overall. But, before you jump, here are five things to think about first.
1. You may need an alternative mortgage program. If you want to finance the home purchase and the renovations and repairs the property needs, you might consider loans like the FHA 203(k) loan or the Fannie Mae HomeStyle loan.
2. There may be appraisal or inspection issues and challenges here if the home is in disrepair. This is especially true if you're using an FHA, USDA or VA loan – properties and applicants must meet strict requirements.
3. You should have a temporary living space. You might not want to end your lease or sell your existing home just yet. If the property needs serious repairs or renovations, you'll probably need to live off-site until they're complete.
4. You may want to bring a contractor along when you tour the home. This will help you gauge what repairs might be necessary and how much they'll likely cost.
5. Be prepared for potential problems below the surface (again, good reason to bring along a contractor). There may be major problems lurking literally below the surface that won't show their ugly faces until later. Make sure you leave wiggle room in your budget for 'issues.'
Fixer-uppers are just one of the many options you have when buying a home and really great for people who are handy, can do some work themselves (and have the time to do so.)
Reach out to Jane Kepley with CR Properties at 760-622-0204 or [email protected]