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Luxury Trends | January 2025 | Chris Doucet
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The Perks of Buying a Fixer-Upper
in News
SOURCE: Keeping Current Matters
There’s no denying affordability is tough right now. But that doesn’t mean you have to put your plans to buy a home on the back burner.
If you’re willing to roll up your sleeves (or hire someone who will), buying a house that needs some work could open the door to homeownership. Here’s everything you need to know so you can decide if this is the right move for you.
What’s a Fixer-Upper?
A fixer-upper is a home that’s livable but requires some renovations. Think cosmetic updates like wallpaper removal and new flooring or more extensive repairs like replacing a roof or updating plumbing.
While fixer-uppers need a little TLC, here’s why they may be worth considering, especially right now:
They Usually Have a Lower Price Point. Because of the repairs involved, these homes are usually less expensive up front than move-in-ready options. According to a survey from StorageCafe, fixer-uppers come with price tags that are about 29% lower, making them a solid choice if you’re having trouble finding anything in your budget.
Less Competition. When you’re ready to make an offer, you’re less likely to deal with competition from other buyers who are focused on move-in-ready homes.
Build Equity Faster. From choosing how to redo the floors to picking which cabinets you want in the kitchen, a fixer-upper allows you to design a space that fits your needs and style. And with smart renovations, you can increase your home’s value faster and potentially see a big return on your investment.
As The Mortgage Reports notes:
“If you’re a house hunter who’s not afraid of sweat equity, buying a fixer-upper could be your ticket to homeownership. Doing so could lead to big savings, even in some of the nation’s largest and most popular housing markets. Plus, adding the right features could help your investment.”
What To Know About Buying a Fixer-Upper
The possibilities that come with a fixer-upper are exciting, but there are a few things to think about first.
Do You Have a Gameplan? Consider if you have the time, skills, or budget to tackle renovations. Be honest about what you can handle yourself, what you’ll need to hire out, and if a fixer-upper is truly a good fit for your lifestyle. Remember, you’ll likely be living in a construction zone at least for a little while.
Prioritize the Repairs and Upgrades: Don’t stress yourself out thinking you’ve got to do all the work up front. Space out renovations over time in a way that makes sense for your budget and what’s most important to tackle first.
Location Matters: You want the money you’re spending to fix up a house to be worth the investment. So, make sure the home is in an area with increasing home values and amenities locals love, like parks and restaurants.
Get a Home Inspection: Hiring an inspector to do a thorough inspection before you buy is a must. What they find will help you understand what needs to be updated, renovation costs, and if it’s a project you want to take on.
Budget for Surprises: Renovations rarely go as planned. So, be sure to set aside extra money to cover things like extended repair timelines, an increase in the cost of materials, or other unknowns that may come up.
Talk to a Lender About Financing Options: There are some renovation mortgages designed for homes that need a little work. But they may have requirements like spending and timeline limits, so talk to a trusted lender to understand the fine print.
bottom line
Fixer-uppers aren’t for everyone, but if you’re open to doing a bit of work, they can be a great way to overcome today’s affordability hurdles and find something in your budget. With the right mindset and careful planning, you could turn a less-than-perfect house into the perfect home for you.
So, if you’re considering taking the plunge, connect with me about finding a fixer-upper that fits your budget and goals.
SOURCE: Keeping Current Matters
Blank Canvas vs. A Life Well Lived vs. An Aspirational Life
Blank Canvas vs. A Life Well Lived vs. An Aspirational Life
Written by: Compass Chief Evangelist - Leonard Steinberg
The recent Los Angeles fire devastation has inadvertently gifted us everywhere a renewed appreciation for HOME: the tragic images of people sifting through the burned ashes of their memories is brutally painful. It serves as another reminder that homes are not merely walls, roofs, space, etc. They are the canvas of our lives, our own 'masterpiece'.....
We as real estate marketers are often confronted with a seller where there are ultimately just three options in how we present their home to the outside world/markets upon resale or renting:
1. We can clear out all furnishings and traces of the 'current/past life' and showcase a blank canvas, possibly whited out to leave everything else to the imagination of the viewer.
2. We can leave things exactly as they are, or moderately modified, cleaned up or simplified that showcases the life of those who have lived in the home. Sometimes when it's ELLE DECOR Editorial-worthy, tidy and beautiful, this can be invaluable. However, even some exquisitely designed homes may just appeal to a very small audience.
3. We can paint, renovate, stage, etc to showcase an aspirational life, one that inspires to a better, more beautiful environment that we dream of as we scroll Pinterest and other media that broadcasts beautiful homes. When YOU spend a lot of money are you looking to improve your life? Most are.
Research shows that a small minority of people have really, really good imagination, anywhere from 5-10% of the population. Which may answer the question as to what might be the best approach. The cost of staging (as well as the cost of living elsewhere while this happens) has to be weighed up against the benefits one might achieve in:
1. The transaction price.
2. The cost of time.
There is a difference between decorating a home and presenting a home for sale, one being significantly more personal and the other designed to appeal to a wide audience. Agents know the difference and can direct their clients accordingly.
TUESDAY's TIP: Interest ONLY loans!!
TUESDAY's TIP: Interest ONLY loans!!
Interest only loans - The Myth, The Facts and The Legend.
All info is provided by Lysa Griffith, OriginPoint
Regional Manager/SVP of Mortgage Lending, NMLS ID: 754386
In response to the 2007 - 2008 mortgage meltdown, one of the casualties was the interest only loan. Interest only loans were originally designed as cash flow tools for higher net worth clients and were not necessarily "bad" loans, but their reputation got tangled up with that of riskier loan programs.
The loan products that truly contributed to the mortgage meltdown were negatively amortizing loans where banks offered loans with a teaser interest rate to start which was below the note rate.
Buyers could make a minimum payment for a limited period of time that was less than the interest only payment and allow the loan balance to grow. Once the loan balance reached 125% of its original value, the loan would reset, and the payment would increase to a fully amortized payment at the full note rate at the higher loan amount.
These loans were super attractive in the beginning, and then a definite cold plunge when reality set-in and the payment jumped up.
Fast forward and lenders offer amazing interest only loans. Today's interest only loans do not negatively amortize and are generally stable loans that give homebuyers control over cash flow. In addition to lower monthly payments, one of the best benefits is that if you pay additional amounts towards principle, the monthly mortgage payment resets automatically the next month.
The new interest only loans feature:
Fixed rate options for the entire term - no surprises
Interest only for the first 10 yrs
Amortizes after year 10 and if it's a fixed rate, you now have a fixed rate program
There are also 40 yr terms available – so after the interest only term (yr 10), you roll into a 30 yr fixed
Advantages of this program:
Lower monthly payments – at times quite significant
Ability to pay down the loan and the next payment reflects the reduced balance
Call us today to see what we can do for you!
