3 Scenarios That Favor Buying a “Fixer-Upper”
You’ve been dreaming about your perfect home for years. Picking paint colors and pinning floor plans have occupied hours of your idle time. Although you’re still giddy as you come closer to homeownership, your excitement is starting wear down as you discover your prequalified loan amount. Don’t worry, you’re not alone.
Many potential home buyers have a preconceived vision of their perfect home. As the real search starts, a painful reality comes to fruition. Even if you’re not approved to purchase that gorgeous bungalow on the cul-de-sac, you may find a home similar for a lot less. Sometimes, home buyers need to be open minded about their true financial situation. If you find yourself having less buying power, consider purchasing a fixer-upper. There are many reasons to do so, but here are three scenarios that may have you looking for your bargain.
The Perfect Neighborhood
It may be the school district or the fact that it’s conveniently located, but the perfect neighborhood is usually sought after by many. So, if you do find a fixer-upper in a great location, chances are you will recoup your investment faster should you ever need to sell. Highly sought out neighborhoods in great school districts usually fetch higher prices too. Therefore, if it needs a bit of polish to bring back the charm, you should consider it. According to Realtor.com, potential home buyers will pay 6 to 10 percent over-budget for a home in a great school district.
Must Have Larger Footprint
Life just happens, and sometimes you just need a larger home. Whether it’s another child on the way or a parent coming to stay for good, there are times when your current property won’t accommodate your growing family. Buying a fixer-upper may yield greater square footage for less, which is nice if you need another bedroom or bath.
FHA 203(k) Loan Option
Searching for a fixer-upper may also have you searching for loan options. An FHA 203(k) loan option may fit your needs and offer you some flexibility. An FHA 203(k) loan allows borrowers to combine the purchase price as well as the renovation budget into one simple loan. Furthermore, you may qualify as a first-time home buyer if you haven’t owned a home in the past three years. Plus, an FHA loan only requires a 3.5 percent down payment, which could potentially save you thousands.
If you enjoyed this post you might also want to read, “How to Create a Competitive Advantage Selling Your Home”
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Working with The Daniels Group will give you with the advantage of having local experts to ensure that you have a successful real estate transaction. From buying and selling to investing, financing, and more, we have the expertise and resources to help you achieve your goals. Call us today at (858) 361-5561 or email us anytime by clicking here.