When you are getting ready to buy a house, you may ask yourself whether you are better suited to purchasing a fixer-upper or a move-in ready home. There are many advantages to both options as well as drawbacks. Understanding these more fully will enable you to make the right decision for you and help you to seek out the right DC home buying programs for your future purchase.
Fixer-Upper Pros and Cons
There are many reasons to choose a fixer-upper for your next home. This is especially the case if you are on a tight budget. Buying a fixer-upper can be a way to get into a great neighborhood that has move-in ready homes outside your pricepoint. Alternatively, you may be able to get a bigger fixer-upper home than you would a move-in ready home.
The first thing to think about with a fixer-upper to see if it is worth the lower price, however, is to know how many repairs you’re getting yourself into. That is why it is so important to pay attention to the home inspection. The home inspection will help you see what repairs need to be done to the house so you can better estimate what the cost of your investment will be. If there are structural issues with the house, that may be a red flag. Structural repairs are costly and can make the house unliveable until the time that the repairs are completed. A fixer-upper in these conditions may not be worth the hassle.
However, a fixer-upper with minor problems could be perfect for you. After performing a home inspection, you can use that document to get a reduced price from the seller. This reduction may be enough to offset the cost of the repairs that need to be completed. What you do not want is to invest more in repairs than the market value of the home once the repairs are finished. This will put you at a loss, and that means that the home is not worth it.
The other element to consider is whether you can handle improvements to a fixer-upper on your own. Homeowners who have DIY experience or have family members who can help them take care of upgrades around the house save much more money than those who have to use a contractor for everything. If you are a person who would be able and willing to do upgrades to your home, that could make the prospect of buying a fixer-upper more appealing.
Move-In Ready Pros and Cons
Of course, not everyone wants a home that’s going to require extra work. That is where move-in ready homes can be a benefit. With a move-in ready home, the homeowner has to do no work in order to be able to move in. Move-in ready homes also offer modern luxuries that older homes may not have such as updated appliances, security systems, walk-in closets, hardwood floors, chef’s kitchens, etc.
The other important benefit of a move-in ready home is that they have simpler financing. Many homeowners find it much easier to qualify for a mortgage for a move-in ready home over a fixer-upper. While both of these require a look at the homeowner’s credit score, employment history, and their prospective down payment, homeowners may find that move-in ready builders are more motivated to get them financed quickly and simply.
The main drawback to a move-in ready home also has to do with the financing: cost. A move-in ready home is generally going to cost much more than a fixer-upper. This is because the builders roll in the cost of the modern conveniences into the price of the home. Additionally, should you want add-ons like taller doors or carpeted stairs, or other small changes, you may find yourself paying thousands of dollars extra.
The other negative to purchasing a move-in ready home is that everything is set for you. Typically, builders will follow a general style for all the homes in a neighborhood and if you don’t want to match that, you may feel stifled choosing a move-in ready home. Homeowners who want more design freedom normally have to wait until after the home is built and find an outside contractor to make the changes that they want. This can be even more costly on an already costly home.
Want to Learn More About DC Home Buying Programs? Contact Us
Whether you want a move-in ready home or you are ready to start work on a fixer-upper, the right broker can help you finance your dream. There are many DC home buying programs that can help benefit you as a homeowner whether it is your first time buying a home or not. Working with an experienced broker, you can take advantage of any DC home buying programs that may be available to you. That is what we can offer at The Busch Team. If you are ready to learn more about how we can help you get into your dream home, contact us today.