Should First-Time Buyers Buy, Build, Fix-Up Their First Home
There is still a limited amount of homes for sale all across the country right now making purchasing a home more challenging for buyers. First-time home buyers may experience a challenge finding a first home they really want to call home.
About a third of Americans who took the recent Harris Poll survey reported that they plan to purchase their first home in the next five years. If you are a potential buyer hoping to find your first home, should you look into a move-in ready home, building a home, or taking on a fixer-upper project home?
Here are some things to consider when it comes to purchasing each type of property:
A move-in ready house seems like the most straightforward and easy of home purchasing scenarios. After all you just buy the house and move-in. This is more easily said than done in the very competitive real estate market we currently have. To purchase a move-in-ready home a buyer needs to be prepared, stay patient, but be ready to move quickly when they do find a home they love. Some real estate agents are advising their clients to consider homes just below their budget so that they have more room to make a more competitive purchase offer. It is always wise to have an experienced expert agent on your side, but now more so than ever as the challenge of buying a home can become stressful without a pro on your side.
Purchasing a home that is not yet built can seem more time-consuming than you would like, but in some cases, it can be an easier process than you think. Some builders offering homes in planned communities are delivering homes in 30 to 90 days from the home purchase. This is due to the fact that lots are already plotted and ready to go for building a home and in some cases the home is partially built. Time frames do vary by builder though and the National Association of Realtors reports that new construction communities take an average of 10 weeks from purchase to move in.
There are many upsides to purchasing a new construction home, but there are a few drawbacks to be aware of as well. It is not uncommon for something unexpected to happen in the building process for example to push back your move-in date. Buyers also tend to get less square footage for their budget as compared to a resale home as well.
Taking on a home in need of major repairs is much more work than it seems, even when you watch those popular renovation shows that come up with that oh so unexpected problem as the climax to the story. If you are set on a certain neighborhood, but just seem to get priced out or beat by a better offer every time you find something you like, taking on a fixer may be the best way to get into your ideal neighborhood. Just make sure you are prepared to stay patient and on budget by not getting carried away with over improvements.
More Great Tips for Buyers
- What Contingencies Should I Waive to Get the House?
- How Much Liquid Cash Should I Have Before Making an Offer?
- What if the Appraisal Comes in Too Low?
- Homes to Look for in the Portland Metropolitan Area
- Timing the Real Estate Market for Buyers is Tricky Business
- How to Boost Your Credit Score for the Best Rates