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When it’s time to house hunt and find a home to make your own, it can be hard to navigate all the choices. To help you make your decision, let’s lay out some key reasons buyers consider fixer upper and new construction homes.
With newly constructed homes, everything from windows and insulation to appliances and HVAC systems are all brand new. Along with the peace of mind that nobody has previously used your home’s features, you’ll also save a significant amount of money on repairs. In fact, the average home improvement spend is nearly $10,000, according to Angi’s 2023 State of Home Spending report.
When you work with certain contractors before your home is built, you may be able to choose its layout, design features, finishes, paint colors, or appliances. Many modern builds include thoughtful design choices that older homes may lack, such as larger closets in bedrooms or a built-in pantry for the kitchen.
Newer construction materials are more sustainable and often more energy efficient than older homes. If you live an area that has inclement weather, like extreme heat in the summers or snowstorms in the winter, newer standards for insulation, building materials, and appliances can help you save money on HVAC costs and make your home more comfortable to live in.
Just like when you purchase a new car, a new home often comes with warranties that cover permanent parts of the home, such as roofing, concrete flooring, plumping, or electrical work. If something were to happen to a system under warranty, it can be covered by the builder and help save you money.
While fixer upper homes may not have the best materials, appliances, and layout as newer homes, they may be listed at a lower purchase price. With a lower buying price, you may be able to budget for a larger home than originally thought.
In general, there is less buyer competition for fixer upper homes when compared to other move-in ready house types. There are not as many people that are willing to put in the time, energy, and work to renovate a fixer upper. With less competition, you’re less likely to end up in a bidding war and encounter mishaps that can occur with multiple offers on the same property.
Homes that need renovations usually have lower property values when compared to newer spaces. By installing upgrades and repairs, you’ll build your home equity and increase its value. When it’s time to sell, the improvements you made may be positive for your return on investment.
Purchasing a fixer upper allows you full control over the contractors that work on your home, the materials used in renovation, and the finishes of paint and hardware. Your home will reflect your tastes with the exact quality of workmanship that your space needs, all without a surprising price point.
When you connect with a Licensed Loan Originator from Homestead Funding, you’re working directly with a home financing expert! Our Loan Originators have the latest tools and information available to help you make informed decisions about your home or investment property. Ready to learn more? Contact us today!
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.
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