In the Mooresville and Lake Norman area you can get some great deals on fixer upper homes. These are typically older homes that haven’t been updated or homes that need anywhere from a little TLC to a lot of improvement. Many buyers who are looking for a home in our area comment that you can have a million dollar home next to a dilapidated shanty. That’s true! Especially if you are looking on Lake Norman. If you are looking to build some “sweat equity” by buying a home that needs some improvement, it’s a great idea, as long as you keep in mind a few important factors.
Be sure you won’t fix it up so much that you are pricing yourself out of the neighborhood. Neighborhoods have a natural ceiling price. It may not pay to take a run-down home in a run-down neighborhood and fix it up. Instead, try finding a home that needs fixing up that’s priced considerably below other homes in the same neighborhood.
Avoid homes with structural defects, these are the most costly, and risky to repair. Make sure you know exactly what you are getting into before your purchase. Have licensed contractors come to the home and give you quotes for the proposed work before you make an offer on the home.
You typically can’t fix ugly. If it’s an ugly home with an bad design, it may not matter how much money and effort you put into it. Homes like these are hard to sell even when they are fixed up. Don’t buy a home just because it’s cheap. Look at it’s true potential value. If you would like, we can do an estimated value for your in advance so you have an idea of what you will be looking at once the repairs have been made.
Consider your financing needs for the purchase and for the improvements. Ideally, you should get a single loan to cover both. 203(k) loans are very good for this purpose. A licensed mortgage loan officer can help direct you to these loans. I can help direct you to some great local loan officers, visit my website at www.AlfordRealtyGroup.com.
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