|Posted on March 31, 2015 at 3:45 PM|
The Spring buying season came early this year as Buyers rushed to grab the best homes off the market just after the Holidays. My gorgeous renovation on Tichenor in South Orange, which got a lot of love and attention but no offers for 6 six weeks, suddenly had multi-offers! A good part of that is because the inventory for houses is extremely low compared to past years. Even as a steady stream of homes have been coming onto the market every week, every week sees most of them quickly go Under Contract. Many of these homes end up in bidding wars with as many as 13 offers on one house! One of them just sold for $70K over the list price!
But some homes don’t get multiple offers. In fact they don’t get any offers at all. Why? Because they’re not updated. They look tired and old… and well, they sort of remind Buyers of Grandma’s house. And aside from the fact that the kitchen is from the 80’s and the bathroom’s from the 30’s, the flow is all wrong. Or the kitchen is this far away tiny room that was originally meant as work station, not the heart of the home, not the life of the party.
These homes sit.
This is where you come in and make an amazing decision. You leave the bidding wars to others. Let them push up the prices, overpay for their house. You don’t need that. You look at the homes that the others don’t want. Why? Because you can buy it below market value, renovate it to the way you’d like and have it designed to your lifestyle and tastes. Not only do you have a house that you’ll love, but you should end up with instant equity in the property. In other words after you buy and fix it up the home it should be worth MORE than what you’ve spent.
Most Buyers don’t have the cash on hand that they would need to use as a down payment for the purchase of the house, plus the costs of updating a property. This is a time to consider financing through a rehab loan. I found this video online. It was created by AmeriFirst Home Mortgage and it explains what a HomeStyle Renovation Loan is.
Yes the process of buying a fixer upper takes more effort. But isn't the reward worth it? You can pay $70,000.00 over the list price to buy a "nothing to do but unpack" house, only to realize months later that you actually don't like the walls painted that color and the funky backsplash makes you cringe. Or you can get right the first time. Pick the finishes that make YOU happy... not the previous owner. Want more information? I'm a phone call or email away. Get in touch with me. I'd be happy to explain the process.