Finding a home that’s just right for you in Albuquerque can be a challenge, especially for first-time buyers on a budget. That’s why more buyers are open to buying a home that needs a little fixing up.
Homes that need repairs will usually sell for less than homes in good shape, obviously. Yet, keep in mind that what may seem like a simple project can turn into a complicated one after you start on it. That means you’ll spend more money than you planned on and repairs may take longer.
Here are some pointers to help decide if a fixer upper is the right thing for you.
1. A fixer-upper can be a shortcut to owning a home in Albuquerque
Because they need improvements, fixer-uppers are typically priced at a discount and may get passed over by buyers who can pay for move-in-ready homes. Also, homes that need work are still eligible for loans with relaxed requirements, like 3% minimum down payments or the ability to qualify with a credit score in the 500s.
2. It matters which mortgage you choose
Renovation loans let you finance a house and improvements at the same time. With a renovation loan, you can pay off improvements over a longer period of time and at a lower interest rate than other types of financing.
3. Match the house to your skills and budget
Hire a professional contractor to estimate the cost of all the work that’s needed before you make an offer. The house that’s right for you depends on your skills, schedule and the way you plan to finance the improvements.
If you get a traditional mortgage, you’ll have to pay for upgrades with cash, a credit card, or a personal loan. These boot-strapped financing options might put a low ceiling on your budget and limit you to one project at a time, so a home that needs simpler repairs may be right for you.
A renovation loan can expand your budget and allow you to tackle larger projects simultaneously, which may make it more reasonable to buy a house that needs a lot of work.
5. You’ll create a home that’s uniquely yours
There’s no doubt that buying a fixer-upper is more work than a move-in ready house, but the reward most likely will match the effort. When the dust clears and the paint dries, your first home will be full of personal touches rather than the remnants of someone else’s life. A house that’s just how you want it without the premium price tag of new construction? Now that’s a first-time home buyer’s dream.
Looking to sell your home for the right price in Albuquerque? Let us help you sell your home in Albuquerque and get the right price. And make sure to join us twice a week on our blog for more great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.
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