Fixer Upper Homes – Not Just For Investors!

Buying a home is the largest purchase most people will make in their life. It is HUGE, and the payoff can be is well. Your own home can be a place to start and raise a family, and can be a great long term investment… particularly if you buy in a down market like today’s.

One big question to consider is whether you want a house that is turn-key or one that is a fixer-upper. A turn-key home is move in ready, and the price will reflect that. Frequently this doesn’t leave the buyer with a budget for upgrades. Fixer-uppers are, of course, houses that need to be fixed up, repaired, renovated. These houses are often foreclosures. Foreclosures can be purchased at a discount, and are a big segment of today’s market due to the recession that started in 2007. They usually require time and money, but can be transformed into a dream home for the right buyer with the right budget!

People typically buy foreclosed homes directly from the lender… the seller is a bank. This can be helpful because they have no emotional attachment to the property and generally price to sell. They can be trickier transactions though too, because it is difficult to get a loan on a home that needs substantial repairs. In these situations the buyer will need all cash or a large cash down payment.

If you do have the right budget and can put time into renovating the property after the close of escrow, the sky is the limit! We frequently recommend that you take a contractor to the home during the beginning of the escrow process to get quotes and establish your budget and timeline. The process can be a bit longer than a standard sale home, but for the right price it can definitely be worth the effort! And, per usual, the first step is to find a knowledgeable Realtor!

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