Buying a home that needs work is often known as buying a “fixer-upper.” One of the reasons why many people buy fixer-uppers is because they tend to be cheaper; you will need to spend money on renovations or remodeling. If you know what you’re doing, you could save money. In fact, many people will “flip” fixer-uppers they have purchased for a profit once they’ve completed renovations.
Here are 3 things you should take into consideration if you’re thinking about buying a home that needs work:
1. How Much Work is Needed?
When buying a home that needs work, make sure the home’s structure is in good condition. If the foundation or roof needs to be replaced, then you could end up spending much more money than you realize getting the house into good shape.
If the work that needs to be done is mostly aesthetic, such as replacing the kitchen cabinets or the flooring, the cost of doing so might be offset by the money you save on the home’s price. If too much work is required, the initial price may not be worth it in the long run.
2. How Much Time Do You Have?
Renovating a fixer-upper can take a long time, especially if a lot of work is required. You need to have patience because you may find other things that need to be fixed as you renovate. This can be problematic if you need to move in by a specific date.
3. How Much Work Do You Want to Do?
Besides repair work, there may be additional renovations that you want that aren’t necessary, such as adding rooms or additions to the house. Remember that you may need permits from the city as well as permission from your HOA to do so.
Keep these 3 things in mind when buying a home that needs work. Contact us at Randy Lindsay for more advice about buying a home.
If you plan to sell a home, you may want to do a few renovations and repairs first. For example, if the exterior paint is fading, you might want to repaint your house. If one of the outlets doesn’t work, you might want to have an electrician do some repair work.
Minor repairs make your home more attractive to buyers. However, not all sellers have the time or money to invest in repairs and renovations. If this is the case, you might consider selling a home as-is. Before you do, be sure to weigh the pros and cons.
3 Pros of Selling a Home As-Is
1. Avoid inconvenience
Repairing and renovating a home can be very inconvenient, especially if there’s a lot of work to be done. You may have to hire different specialists to perform different tasks. Each task will require a significant amount of decision-making on your part. It can be a hassle.
2. Sell faster
You can put your as-is home on the market right away. Because your home may be priced below market value, you may find a buyer faster.
3. The selling process is easier
You won’t have to worry about pre-sale inspections, staging, open houses, and more. Buyers know what to expect with an “as-is” property, so the sales process may be quicker and easier.
3 Cons of Selling a Home As-Is
1. Buyers are harder to find
Most buyers don’t want the inconvenience of repairs and renovations. You’ll be limited to those looking for a good deal and a fixer-upper.
2. Buyers will negotiate more
Because it’ “as-is,” most potential buyers will try to negotiate the price down even further.
3. You will make less
Few will pay market value for a house in need of significant repairs or renovations. You may have to price the property below market value.
If you’re thinking of selling a home as-is, be sure to weigh the pros and cons. For more advice about selling a home, contact us at Randy Lindsay today.
Before the pandemic, 2020 seemed like as good a time as any to buy a home. Now everything has changed.
During spring, buying a home was not a realistic possibility since most states were under lockdown. Now that states are opening up again, you may be wondering if now is a good time to buy a home. Or should you wait?
Here are 3 things to keep in mind as you decide if now is a good time to buy a home:
- Interest rates are lower – Meanwhile, interest rates are lower than ever! Average interest rates on thirty-year mortgages are around 3.25% with about 2.74% on 15-year mortgages.
- Lenders are becoming stricter – Lenders aren’t quite as willing to give out loans because the pandemic has negatively affected the economy. Their credit requirements may be stricter as well. You’re going to need to be in a strong financial situation (be financially secure and able to put down a larger down payment). If you are financially stable and your credit is solid, this shouldn’t be an issue.
- There aren’t as many sellers – Many homeowners removed their homes from the market or simply decided not to list their houses as a result of the pandemic. Financial situations changed for many sellers, which means moving may no longer be an option for them. Other homeowners simply don’t want to deal with finding another home in the middle of a pandemic.
The real estate landscape has altered significantly due to the pandemic. Depending on your situation, now might be a very good time to buy a home. For more advice, contact Randy Lindsay today.
The last thing you expect to do when you put your home up for sale is to remove it from the market. When it comes to home selling, there are a number of situations in which that is exactly what you should consider.
The following are 4 examples in which taking your house off the market is the best course of action:
1. Your House Has a Serious Problem
If you discover there’s a serious problem requiring significant repairs (like, the roof needs to be replaced), then you should take your home off the market. Address the problem. If you don’t, the problem will scare potential buyers away.
2. Your Personal Situation Has Changed
If your financial situation has changed for the better or the worse, you should consider whether that affects the sale of the house. For example, if you were being forced to sell due to financial stress but suddenly found a job, you may want to take your house off the market.
3. You’re Getting Bad Offers
If your real estate agent helped you price the house properly and the only offers you’re getting are lowball offers, you might want to remove your listing. The longer you keep your house on the market, the more buyers will think there’s something wrong with it. They will continue lowballing you.
4. You’re in the Middle of a Buyer’s Market
If there are way too many houses for sale in your area, it can result in fewer buyers willing to pay your price. You may want to take your listing down and wait until the local real estate market changes in your favor.
Sometimes removing your house from the market is a good idea. These are just a few examples.
For more home selling tips, contact Randy Lindsay today.
Those in the market for a house would like to take their time finding a new home. Unfortunately, time is not always on our side. Some buyers may be relocating or have sold their current homes, which means they have little time to shop for a new house. If this is your situation, the following are a few home buying tips to help you speed up the process:
- Get pre-approved – The mortgage approval process can really slow things down, especially if you’ve found the house you want to buy. If you get pre-approval, you will know exactly how much you can finance. You’ll be able to close much faster.
- Know what you need – Figure out what your needs are right off the bat. This way, you can instantly eliminate homes on the market that don’t meet those needs. Don’t waste time looking at them or trying to make a decision.
- Look in areas with high inventory – The bigger the inventory of houses available, the more likely you’ll find one that meets your needs. You’ll also have less competition in these areas.
- Work with a real estate agent – A professional agent will understand you’re pressed for time and will help connect you with sellers who are also looking to sell quickly. When working with an agent, you’ll find the home buying process will go much quicker: They can find properties that fit your specific needs while also acting as an intermediary with sellers and their agents.
Use these home buying tips if you need to find and buy a new house quickly. To speak with a local real estate agent that can help you, contact us at Randy Lindsay today.