In a tough seller’s market, one of the most creative ways to adapt and buy a house with less competition is to purchase a cosmetic fixer upper, a home that needs a little bit of TLC.
I am not talking about a major fixer upper: a home that requires you to re-build parts of the home. (Major fixer uppers will not qualify for Conventional, FHA, or VA financing so you would need alternative financing or cash.)
I am talking about a cosmetic fixer upper: a home that needs fresh paint, updated flooring, fixture upgrades, new appliances, new backsplash or countertops, etc.
In other words, we’re looking for a home that is livable but just… ugly.
Why is there less competition for these homes? Because they require 3 resources that not every buyer has:
Vision
Most buyers who step into a home have a hard time seeing it for more than it is. People have a hard time looking past colors and style, even though these are relatively simple fixes. But this lack of vision causes buyers to pass on suitable, functional properties all of the time.
Time
In addition to vision, many buyers do not have the time or they do not want to make the time necessary to get the work done. A lot of buyers either want (or need) something that is “move-in ready.” Even painting can add a few days to how quickly you can move in. Flooring replacement, kitchen remodel, or bathroom remodel can take weeks or months.
Money
Last but not least is money. Most buyers are maxing out what they are spending on the purchase itself and do not have extra money to put towards the house beyond purchasing it and paying to move.
I see buyers pass on great deals because they lack vision, time, and/or money. But if you’re reading this and thinking, “I have vision, I have time, I have money,” then I think that buying a cosmetic fixer is a no brainer for you!
Even if you lack one or two of these three resources, if you have the inclination and tolerance to DIY, then I think it is worth your time to at least explore the possibility.
If you are interested in considering a cosmetic fixer upper, let’s set up a time to talk so I can 1) train you how to spot these houses and 2) teach you how to make a competitive offer.
Click here and select a time that works best for your schedule!