A fixer-upper can scare many home buyers as they picture a home in desperate need of tender loving care, but it’s a term that doesn’t always deserve a negative connotation. The fact is, there are many advantages to buying a fixer-upper.
Depending on your situation, the benefits of a fixer-upper may outweigh those of a move-in ready or brand new home. Let’s take a closer look at some of those advantages:
It’s hard to beat the price of a fixer-upper, especially if you can’t afford a move-in ready house. A fixer-upper is almost always priced below its potential market value, due to the work that needs to be done.
More Room to Negotiate
The price of a fixer-upper can often be negotiated more than a move-in ready home.
Lower Mortgage Payment
Paying less for your home usually means a lower loan amount – and a lower mortgage payment.
Your property taxes are lower on a fixer-upper because they’re based on the price you paid for the home. In some cases, you might can claim an investment tax credit for rehabilitation costs.
You Get More Home for Your Dollar
In many cases, buying a fixer-upper means that you get more square footage for your money. The house could have an extra bedroom or bathroom that a move-in ready home does not.
Buying in Your Dream Neighborhood
Is there a neighborhood with a great school district that you’d love to move into, but is a bit on the pricier side? Buying a fixer-upper is one way to get into that neighborhood, especially if you don’t mind the work needed to improve the home.
Freedom of Design Choices
Another benefit to buying a fixer-upper is that you have the freedom to design it any way you want. You know that upgrades are needed going in, and you can make them to meet your design and taste preferences. Want to knock out a wall and create a larger room? There’s no stopping you!