There are good reasons to consider a fixer-upper when buying a Columbus home. Fixer-uppers usually have fewer buyers interested in pursuing an offer, so the pricing can be much more favorable compared to homes that “show well” and command top dollar in many cases. Also, lean home inventories can make it challenging to find the ideal home in your preferred location. By considering a home that needs some work, you might find a diamond in the rough that could become the home of your dreams! Here are 7 tips to help you!
1. Look for fixer-uppers in the best Columbus neighborhoods. Location plays a significant role in home value.
2. Avoid homes that have structural defects. Unless you are a highly-experienced rehabber, tackling bad foundations or other serious issues can be more expensive than it’s worth. You can find home condition guidelines in our free e-book, “How to Buy a Home Like a Pro.”
3. Homes that are basically sound, but require updating, can be great investments. However, you must also consider the length of time you plan to live in the home. In most cases you should plan to be in the home for at least five years. We can help you identify the most cost-effective renovations for the best return on investment.
4. Know how much of the work you can realistically handle yourself. Not everyone is equipped with the skills, financial ability, time and temperament to deal with home renovations. Make a list of what you are willing to do on your own – painting, carpeting, fixtures, landscaping, ect. Search for homes that are within your skill set.
5. If you’re not a handyman, you could still find it worthwhile to buy a fix-upper. The key is to have a realistic idea of your repair costs. For example, if the home inspection points out an issue with the furnace, it would be wise to have a professional provide you with repair estimates before you go through with the deal. Get a contractor’s advice for any areas of concern.
6. Fixer-uppers can be found in just about every price range. Luxury home buyers who are seeking certain features may find it beneficial to renovate a home to their personal tastes.
7. Use the right financing for your situation. For example, Fannie Mae’s HomePath Renovation Mortgage allows you to buy homes that need light to moderate repair. This mortgage allows you to fund your home purchase and finance your renovation costs within a single loan. There is also the FHA “203K” loan program that allows for the purchase, repair and closing costs of your fixer-upper. But the “203K” loan isn’t just for rehabs – it’s also appropriate for updating the home with new appliances, paint and carpeting. We can refer you to trustworthy mortgage professionals who can help you with your financing options.
As your Exclusive Buyer’s Broker, we serve your best interests at all times. Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times. Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner.
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
