Homes by Email

Be the first to see new listings as soon as they hit the market!

Quick Search


view all


Any

Any

No Min.

No Max.

Kissinger Bigatel & Brower Realtors

State College, Pennsylvania
Real Estate Team
814-571-8204
Contact Us

Contact Us





* fields are required

Five Reasons to Buy a Fixer-Upper Instead of a Perfect Place

“Location, location, location” is the mantra when it comes to where to buy a home. But when it comes to what to buy, it gets a little more complicated. There is definitely a contingent who would insist that you would buy the best home you can afford. But while there is something to be said for buying a move-in ready home, a place that needs a little love can be downright irresistible.

You don't have to go all Chip and Joanna here, but buying a fixer-upper makes sense for so many reasons.

It costs less

“Fixer-uppers list for an average of 8% below market value,” said LearnVest. If you’re on a budget or are being priced out in your market, this is a way to get a literal foot in the door. How much depends greatly on the location. “Fixer-uppers in Phoenix have the smallest cash discount, saving buyers just $1,000 off list price. But you can save a lot of money in expensive markets like San Francisco, where fixer-uppers are discounted an average of 10%—giving homebuyers $54,000 in upfront savings for renovations on the median home.”

You may be able to finance your renovation

One of the major drawbacks of buying a home that needs to be fixed up is having to come up with the cash—especially after you’ve just put so much money into your down payment and closing costs. There are a few different types of loans that package the mortgage with funds for renovations, and they often come as a surprise to buyers who have only focused on FHA and 30-year conventional loans.

“Whether you need a new roof or your kitchen is outdated, there is a mortgage that’s right for your fixer-upper,” said Bankrate. Fannie Mae’s HomeStyle loan and FHA’s 203(k) loan both bundle a mortgage and funds for renovations. They each require a minimum credit score of 620. You’ll need at least 5% down payment for HomeStyle and just 3.5% for the 203(k).

It gives you the opportunity to build value

With an already-updated home, “If a seller has redecorated or improved the whole place, that seller is reaping the benefit,” said Forbes. “If the home's value has been raised, the buyer is paying for it. Also, consider this reality: A seller who re-does a whole house in order to sell is not likely putting in the highest-quality materials. They're cutting costs to maximize profit. But if you buy a fixer-upper, you might be able to secure an undervalued property, improve it and get the benefit of the extra equity. It's a core real estate concept. If you can find the right property, this could mean thousands of dollars almost immediately.”

You can do renovations over time

There may be a few things you can’t live with in a fixer-upper, like the grungy carpet and cruddy plumbing fixtures, but no one (other than design shows) says your place has to be perfect the day you move in. Taking your time to make updates as you’re able gives you the opportunity to save money and recover from all the expenses of buying the home and moving in.

It allows you to put your stamp on it

When you buy a home that was lived in and fixed up by someone else, it reflects their taste and style—or at least the taste and style they think will help the house sell faster. If you buy a house with the intention of fixing it up, you get to update and upgrade it to your standards, and you have the money to do so.

“One of the primary reasons people buy fixer-upper properties is for the opportunity to make the space their own,” said Green Residential. “Instead of purchasing a home in which someone else designed the layout, chose the materials, and dictated where different elements were placed, you can buy a basic structure and then take charge. It’s like building your own home without having to go through the lengthy process of drawing plans and constructing it from the ground up.” 

Comments

There are no comments for this post. Be the first to comment!

Leave a comment

Comment
Already have an account?

Password Not Required


Kissinger Bigatel & Brower REALTORS® 
1612 N Atherton St
State College, PA 16803
Phone: 814-571-8204
Email: pchiarkas@comcast.net
Brokerage Phone: 814-238-8080

Testimonials

After having been "assigned" a real estate person for our first showing, we decided going forward to go with Krissy Bonson. We have had a personal relationship with her in the past and we will never regret going with her. Krissy is the definition of professionalism and will be prompt and honest and  will go the extra mile for you all the time. She tried her best to work with our schedule and when we did finally have an offer accepted, she answered all of our questions and walked with us every step of the closing process. I cannot imagine anyone who could have done a better job for us than Krissy. I would highly recommend her to anybody considering someone to work with either buying or selling a property ANK9
Peter and his team helped us buy the perfect home for our family. They listened carefully to what we were looking for in a home and guided us towards those homes and locations that were suitable. When we had questions they responded very promptly and thoroughly. We're very satisfied with our  experience! kgphillips4
Krissy was great to work with throughout the entire home buying experience. She listened and provided great feedback on houses that we visited. When we got to the buying process she was very positive and knowledgeable with everything. She never left us with a feeling of doubt and was always open  and honest with us. I would highly recommend her to anyone buying a new home in the area ChazRobison
Peter and Krissy were amazing to work with. We had a few "hiccups" in the sale of our house (not due to them) but they continued to do what they said they would and they got our house sold. dakingemt
View All

Connect With Us

Newsletter

Subscribe to our newsletter...

* fields are required

Blog

Hot, Normal, and Cold Markets

Hot Market This is an extremely competitive market and is advantageous to the seller. Sometimes, homes will sell as soon as they are listed or even before homes are listed. Typically, during a hot market, multiple offers will be made on each home and mor... Read more
View All
Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu