"Fix-up homes may be in need of more work than a typical home and are certainly harder to find now than in previous years. Buyers and investors willing to put in a little extra legwork and sweat equity can find the best deals." ~ Daren Blomquist
Minneapolis, Minnesota (PRWEB) June 14, 2013
The latest cities “Top 15 List” where homebuyers find fixer-upper bargains, according to a new RealtyTrac report, shows the Midwest dominates the list. Spring home buying season has brought sunshine to the housing market; low inventory is spurring bidding wars and multiple bid offers, putting Minneapolis real estate sellers in command. Fix-up home bargain hunters are told deals can still be found, according to the report. RealtyTrac gathered information on bank-owned homes built before 1960 and valued under $100,000.
"In order to present the best possible offer when buying a bank-owned fix-up home, homebuyers will want to be lender pre-approved for a home loan. This is best when competing with cash buyers. If a fixer-upper bargain is found, buyers must be prepared to act quickly and be positioned to sign a contract immediately, advises Jenna Thuening, owner of Home Destination.
With low housing inventories, home buyers open to consider fixer-upper homes "may find they are competing against fewer buyers and are able to buy at a lower price point," RealtyTrac reports.
Residential Finance, a nationwide lender, believes great opportunity awaits potential homebuyers willing to take responsibility for a home needing repairs. Advise abounds that consumers be aware of special financing considerations. "Fixer-uppers are fantastic, but consumers should educate themselves on the options available for loan financing, including rehabilitation loans. Not all loans will work to finance repairs for a fixer upper because the present-value appraisal of the deteriorated house can limit the lending options," says Brandon Davis, Ohio branch manager.
8 Tips For Fixer-Upper Home Bargains From Home Destination
1. Fix Up With Paint - When fixing up a home to resell, painting is important. Check with a painting contractor for recommendations of using semi-gloss paint through rental properties, which will make life easier for a tenant trying to wash the walls.
2. Hire Out Home Improvements - Delegate fix-up task to the right professionals. It may be easy enough to spend time working on one fix-up properties, but as the number of bargain homes a buyer takes on increases, the demands merit delegating the work by hiring it done.
3. Invest In Curb Appeal - Landscaping a home's front yard gives it "curb appeal" that gains prospective renter's attention and eagerness to make it home. The more inviting the front of the property is, chances of gaining a better tenant or buyer improve.
4. Gain Financing For Fixer-Upper Bargains - Consider FHA’s 203(k) home renovation loan, additionally termed the FHA rehab loan. It is known as HUD’s primary program for the rehabilitation and repair of single-family properties. The 203(k) loan is like a construction loan, with the first draw of the mortgage money going to buy the desired home. After that, draws are given to pay contractors for the renovation work until completion.
"Another great option is Fannie Mae’s HomePath program," says Keith Zabrocki, referral desk manager with Residential Finance. "A buyer can purchase a home with only three percent down and no appraisal is required. Both the FHA’s 203(k) program and the HomePath program have been instrumental in helping consumers purchase fixer-upper homes."
5. Pay Attention To Water Problems - Missing potential water problems can quickly add up to costly repairs. Moisture penetration may generate costly damage and fast. Check for pending water issues and place the "priority list".
6. Have A Manageable Plan - Many prospective homebuyers start with well-meat intentions to dedicate weekends and evenings to tackle the painting, cleaning, and fixing that is necessary to care for the house. A fixer-upper bargain may be a perfect investment for "handyman" homeowners.
7. Research The Homes Bones - The older the home, the better chance surprises will be unearthed when delving into the home's rehab. Nearly all older homes need updated insulation. Where fix-up budgets are slim, purchasing newer homes many mean only cosmetic repairs are required.
8. Set A Limit On Home Improvements - It is easy to get into the project and spend too much on home improvements for a rental investment home. Watching return on investment may mean sticking to basic material and appliance models.
To gain personal guidance from an experienced Minneapolis residential Realtor for buying a Twin Cities fixer-upper home bargain, call Home Destination at 612-396-7832.