So... You want a fixer upper!
It's a statement by many that really should, most definitely, be a question:
"Do I really WANT a fixer upper?" "CAN I really pursue buying a fixer upper?"
Purchasing a fixer upper is not like we see on television. Most of us do not have a talented and experienced crew at the ready to make the transition of the property toad into a real estate prince a quick & efficient occurrence. And for most properties, it's a LOT more than just adding some neutral colored paint to the walls.
Before you HONESTLY consider if you TRULY can embrace all that is involved with a fixer upper, you first need to know IF purchasing a fixer upper is a conceivable concept .
Cash? No problem. You CAN purchase a fixer upper.
Financing? Hold up! What type of loan will you be using? FHA? VA? Conventional?
IT MATTERS. But you're handy & can easily fix it after closing? It DOESN'T matter. I'm not going to pretend to be a financing expert here but, let's just suffice it to say that the lender has certain expectations to a property's condition. Let's face it, we borrow money and they let you live in THEIR property.
They DO have a say in some minimal standards that must be present at closing.
A property's condition in our market is categorized as:
· Superior (typically reserved for new construction)
· Excellent (move in ready and current decor)
· Very Good(you can live there and probably want to update the decor)
· Good (you probably want to stay put and get some work done before moving day)
· Fair/Poor (you most likely have that experienced crew waiting to help you AND you have cash on hand OR are willing to go through the 203k loan process).
Keep in mind that the condition of a house goes far beyond the decor. While a home inspection will give you a detailed idea of what you need to do to optimize the safety and efficiency of a property, you need to seriously consider all that is involved before submitting an offer. Take off those fixer upper-rose-colored shades and really check things out (and if it's still a go & you get an offer accepted, be sure to have a thorough home inspection to learn more).
Listen to your agent too. A good agent will help you connect your goals with reality. It's not that they don't want to show you the home in fair condition. They want to help you minimize the aghast in making them reality.
It could be for you though. It really could. If your financing is conducive to it, the time and financial requirement makes sense, and you're a patient person who can wait to see the vision become reality, a fixer upper can work for you.
Purchasing a house is stressful. You can easily add to the stress by pursuing purchase of a property that just doesn't fit your scenario. Cash? Purchase whatever you want. Financing? Let's talk more.
After all, real life isn't HGTV and REAL real estate most definitely is not.
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