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.
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.
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.
Buying a home is a lot different these days than it was a decade or two ago. Millennials currently seeking to buy a home for the first time need to keep a few things in mind before they take the plunge.
The following are five tips to make the home buying process easier for millennials:
- Buy during the right time – Research the local real estate market. The best time is a buyer’s market, which means there are a lot of sellers and fewer buyers. As a result, you’ll have more room to negotiate and less competition.
- Know the true homeownership costs – Mortgage payments won’t be the only financial burden of homeownership. You’ll also pay:
- HOA fees
- Homeowner’s insurance
- Mortgage insurance
- Property taxes
- Utility costs
…and more. Keep this in mind as you develop your budget.
- Pay off your debts first – Many millennials have large college loan debts. If you have any outstanding debts in your name, try to pay them off before you apply for a home mortgage, or you could find yourself financially strained.
- Save up for a down payment – The bigger your down payment is, the less your monthly mortgage payments will be. Your interest rate will be lower as well. By saving money so you can make a larger down payment on a home, you’ll save more money.
- Understand the closing costs – There are more money responsibilities after the down payment. You’ll be expected to pay for a variety of closing costs, including loan-related and property-related fees. Typically, closing costs account for 2-5 percent of the total cost and must be paid at the time of closing.
These are five tips of which all millennials should be aware when buying a home. For additional first-time home-buying advice, contact us at Randy Lindsay today.
If you’re looking to buy a new home, it’s a good idea to work with a real estate agent. A knowledgeable agent can provide you with a wealth of information and advice about buying a home. They will also have a large network of resources to help you find the perfect property.
These are 5 questions you should ask your agent when buying a home:
1. Is the house properly valued?
An agent can find out how much similar homes have sold for in the same area to determine if the price is fair or not.
2. How long has the house been on the market?
If the house has been on the market for a long time, it lets you know that there’s not a lot of demand for it (or that the house is overpriced). This puts you in a better position to negotiate.
3. What are the associated costs of ownership?
You’ll want to know about HOA fees, utility costs, and property taxes before deciding to make an offer.
4. What is the neighborhood’s marketability?
Your agent can tell you if the area is in high demand. Future events (such as the construction of a nearby highway) could affect this demand, and real estate agents have access to that type of information.
5. Why is the owner selling?
An agent can learn the real reason the owner is selling. If the owner is in a hurry to sell, it can give you some negotiating power when it comes to making an offer.
These are a few questions you should ask an agent about buying a home. To speak with a professional real estate agent about your home-buying needs, be sure to contact us at Randy Lindsay today.
Being a first-time homebuyer is exciting, but there’s a lot about buying a house you may not know. For example, odds are you’ll need to apply for a mortgage. Where should you go? What’s needed? The following are some of the questions you might have about first-time homebuyer programs:
What are first-time homebuyer programs?
There are many different home-buyer programs established to encourage people to become first-time homebuyers. Look into the FHA and USDA loan programs and the HomePath Ready Buyer™ Program. There are also loans available to homebuyers with specific qualifications, such as the VA loan program and the Good Neighbor Next Door buyer aid program.
Why consider a first-time homebuyer program?
First-time homebuyers may not have a lot of credit history. Many of these loan programs are easier to qualify for if you don’t have a high credit score.
Some first-time homebuyers haven’t had a chance to save a lot of money for a down payment, either. First-time homebuyer programs tend to require much smaller down payments and lower credit scores than conventional loans. Some even provide closing costs assistance.
What are the requirements for a first-time homebuyer program?
Many of the loan program requirements vary, so be sure to compare. For example, an FHA loan typically requires a credit score of 580 and a 3.5% down payment. Or, you might qualify with a score of 500 but will have to put 10% down.
For more in-depth advice on first-time homebuyer programs, be sure to contact us at Randy Lindsay today.