Buying a fixer upper.
With all the shows on TV showing homes being flipped for cash, many buyers when they first start looking for homes are asking for fixer uppers. I mean how hard can it be with all these shows on TV and everyone making money. Forget about the drama in those shows of the problems unearthed during rehab, the delays incurred waiting for permits and the fact the show is paying the wages of those featured, so those costs are not included.
Frankly, for Main Line and Tredyffrin Easttown home buyers, buying a fixer upper can be a good option. Yes, there is definitely competition. With the lack of inventory, not only are contractors and builders looking for these homes, but many buyers are as well.
However when a buyer sees many fixer uppers their comeback is:
"That is way beyond my skill level!"
Not every home looks this bad
Some homes need purely cosmetic touch ups, many need a little more work and while it may be beyond the skill level of most buyers, you can include these homes in your purchase options using a renovation loan.
There are plenty of posts on Active Rain that cover the ins and outs of renovation loans, see below or search the term. On the whole the main thing is these loans allow you to consider a home that needs work, using a contractor you get estimates and the appraised value takes into account the work you will do as if it is already done. So you can purchase the home and draw down on those additional funds as the work is completed by the contractor, FHA loans include an inspector/consultant as well.
Renovation Loan Inspectors and Consultants by Joe Petrowsky
Fannie Mae Homestyle Renovastion Loans for Homeowners and Investors by Dale Cosack
For buyers along the Main Line and the Tredyffrin Easttown area where inventory is light, widening the purchase options and being able to consider other homes that may be beyond their skill set for work may help them get into a home in their desired neighborhood.
Need a new kitchen or bathroom, windows or a new roof? A renovation loan can cover the cost and you hire a contractor to do the work.
If you have not considered this option before or want more information about potential Main Line and Tredyffrin Easttown homes contact me today. Nick Vandekar, Selling the Main Line with Long & Foster Real Estate Inc., office 610-225-7400, cell or text 610-203-4543, Nick@VandekarTeam.com, www.SellingTheMainLine.com.
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