Situation: You see a house. You love its style, the block, the neighborhood, the town, the schools, the price and even your realtor :). But you hate the old kitchen and the even older baths and the roof needs replacing and, in a perfect world, a wall or two should be moved to create a more open living space. Do you take the plunge into the world of houses that need work or do you head for the exit? Only you can answer that question and, make no mistake about it, doing significant work on a house can be challenging. Then again, it will be your house…just the way you want it. So, allow me provide some perspective to help you with your decision.
First, homes that need work don’t sell only to handy-men as in handy-man special. Plenty of un-handy people buy them because they are usually priced to sell and there are many remodeling, renovation and restoration firms around that can do a superb job for you. But what if you are moving into an unfamiliar area and you don’t know who to hire. Coldwell Banker Residential Brokerage, as part of its Concierge Program, maintains a list of qualified vendors and contractors who can do what you want done at a fair and reasonable price.
Second, distressed homes can also be found anywhere, in any neighborhood and for any price. You can pay under $200,000 or well over $1 million for a distressed home. Sounds a little weird, doesn’t it? A fixer-upper for a million dollars.
Finally, you don’t have to use your own money or take another loan on top of your mortgage to get the work done. HUD FHA offers a mortgage called a 203k Streamline which, if you are a first time buyer and plan to live in the house you fix up, will allow you to fold your construction and remodeling costs into your mortgage, and you can do so for only 3% down!
Oh, there’s one more thing. If you decide to buy a house that needs work make sure that you hire a very good home inspection service. The Coldwell Banker Residential Brokerage Concierge Program can help you here, as well. A really thorough inspection can eliminate surprises.
To whet your appetite, I’ve included a couple of short videos, as well as pictures of projects that I did. One required the replacement of a partially burned out third floor. You might want to pass on a deal like that.
