Buying a fixer upper is sometimes scary. I still think of the movie Money Pit with Tom Hanks. But fixer upper these days make so much sense for a first time homeowner.
So why don't more people do it? They are scared. When we talk to people about fixer uppers, we often hear:
- “I do not know anything about fixing up a house.”
- “I don’t know how to identify a good deal.”
- “Fixer uppers are for people that have a lot of money to invest into a house.”
Below are 5 reasons why you should change your thoughts about fixer uppers.
- Fixing up a home is really about more time than money. And when you are younger, you have more time and often have more energy. You can do the time consuming projects that cost money if you were to outsource. You can do all the ‘leg work’ and save a lot of money.
- FHA loans allow you to put down 3.5% (vs. the industry standard of 20%). This allows you to have the money to put back into your home.
- HUD housing allows first time home buyers an opportunity to bid on a house before investors are allowed to bid. This gives you a distinct advantage to get good deals before investors.
- Your sweat creates equity. When you are first buying a home, you don’t have the money to build equity. But your sweat can create equity in your home. And the more opportunity to sweat, the more opportunity for equity.
- Building the equity and then selling your first home, sets you up to get into a bigger house down the road (or just to pay off another home faster).
- NO EXPERIENCE is required on understanding what is a good deal is. Just make sure you have a real estate agent that understands the market, understands wholesale pricing, and can connect you with supply sources or contractors if needed.
If you have any questions on buying a fixer upper, call me! 727.510.1811.