When you picture your next home, you probably have a wish list: the right neighborhood, enough space, a great kitchen and a home that feels like you.
But what if finding all of that in one move-in-ready home is pushing your budget too far?
A fixer-upper could give you another way to approach your search. Instead of paying more for someone else’s idea of the perfect home, you may be able to buy for less, improve what matters to you and make the home your own.
How Can a Fixer-Upper Expand Your Home Search?
Move-in-ready homes have obvious appeal. But when many buyers are looking for the same updated kitchens, renovated bathrooms and picture-perfect finishes, those homes may also come with more competition and higher price tags.
Include homes that need updating, and suddenly your search may get a lot bigger.
That can be especially helpful if location is a priority. Maybe you’ve found the neighborhood, school district or commute you want, but updated homes there are outside your budget. A home that needs some TLC could offer a more affordable way into the location you want.
Instead of changing where you want to live, you may be able to change what you’re willing to update once you get there.
Why Pay for Someone Else’s Renovation?
That beautifully renovated kitchen isn’t free. Its new cabinets, countertops, appliances and flooring may all be reflected in the sales price.
And what if they’re not what you would have chosen?
Buying a home that needs updating can give you the opportunity to make improvements around your needs, priorities and style.
Maybe you’d rather have an open kitchen than a formal dining room. Perhaps you need a home office, another bathroom or better storage. Or maybe the home simply needs new flooring, paint and finishes to feel like yours.
Instead of paying a premium for someone else’s vision of move-in ready, you can create your own.
How Do You Finance a Fixer-Upper?
One of the biggest questions buyers have is how they’ll pay for the home and the improvements.
Renovation financing may allow qualified buyers to finance the purchase of a home and eligible improvements through a single mortgage solution. That can eliminate the need to purchase the home and then separately figure out how to fund the renovation.
PrimeLending has extensive experience with renovation lending and offers options for projects ranging from relatively simple updates to major renovations. A PrimeLending home loan expert can walk you through the financing process, explain your options and help keep the mortgage side moving.
That leaves you with more time and energy for the fun part: deciding what to change, prioritizing projects and choosing the finishes that will turn the house into your home.
Could a Fixer-Upper Be a Smarter Way to Buy?
It depends on the property, improvements, financing and your individual financial situation. But if your current home search isn’t giving you enough choices, don’t automatically scroll past the homes that need a little work.
The right question may be: Could you buy the location you want and create the home you want?
Before ruling out that less-than-perfect house, explore PrimeLending’s renovation loan options or connect with a PrimeLending home loan expert to see what may be possible.
