Should you buy a homely home?
Of course you want your next home to reflect your style and taste, but sometimes the best home for you isn’t the best-looking home on the block. There’s a compelling argument for choosing the home that needs a makeover – often called a “fixer-upper” – and then making adjustments to make the home just right.
Most buyers want a property that is move-in ready, and don’t have the experience or patience to remodel a home. Some are reluctant to hire contractors for fear of getting in over their heads, especially if they’re first-time homebuyers. And then there are buyers who simply can’t visualize the home transformed to their liking.
In August 2016, the median sales price of new houses sold was $284,000, while the median existing home was $240,200. Both new and existing homes are at a 4.6-month supply nationwide, and the homes selling quickest are those that require the least alterations.
Buyers will pay a premium for a move-in ready home, while it’s possible to purchase a less-than-perfect home at a considerable discount. It’s also much easier to negotiate on a home that isn’t attracting multiple offers and closed bids, which tends to happen when a home is ready to be lived in right away.
Buyers of fixer-upper properties will also be able to afford to live in a better neighborhood, where they may have the least impressive house, but where the desirability of your neighboring homes will help raise the value of the home they bought. This house may not have granite countertops in the kitchen or hardwood floors throughout, but those are features that can be easily installed.
Thinking of purchasing a home? Ask your local Berkshire Hathaway HomeServices REALTOR®, such as myself, for advice on fixer-uppers and to show you exactly how to turn a homely house into the home of your dreams.
Information provided by Berkshire Hathaway HomeServices California Properties and Affiliates.