Buy A Move In Ready Home or Fix One Up?

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Real Estate Agent with Coldwell Banker Select Professionals

Buy A Move In Ready Home or Fix One Up? Gettysburg PA Real Estate is available in all forms, but what is the best choice for each individual buyer? 

We've already established that there isn't a buyer in the market that isn't taking advantage of the inventory and looking for the best deal, at least what they seem to think is the best deal.  So recently the "fixer upper" has been mentioned quite a few times.  The particular people I'm working with have gone to both ends of the spectrum.  We've seen move in ready, foreclosures, and the god awful. 

This is a great opportunity to look at the financial aspects and potential net gains from buying a fixer upper or buying a move in ready home.  Before I even do this evaluation I can tell you that personally I'm leaning toward move in ready.  I have some rentals that have required more than their fair share of renovating which isn't always in the budget but necessary.  That being said lets consider some of the items that would effect a buyers decision.

1.) I think first and foremost you have to consider how long you're planning on staying in the house.  If you're considering living in a home for only 5 years it's imperative that you consider the amount of money that you would spend on a payment over 5 years vs. how much cash it would take to renovate the property.  If the payment difference between the fixer upper and move in ready is 400/mo it's equates to 24,000 over 5 years.  Make sure it makes sense either way. 

2.) What is the equitable value of the renovation?  It wouldn't make sense to spend 50,000 renovating a property only to find out that the house only gained 20,000 in value after renovations.  In the current economic climate you really have to consider your market and the price trends.  I'd certainly avoid this scenario of prices are trending downward (they are still doing so locally). 

3.) Are you prepared to live in a home while you are renovating?  Are you capable of managing a renovation or are you paying someone?  Can you live in a house that is being renovated? 

Those are just a few, but I think in general most people are better off financing a little more of a payment in order to get a home that is completely ready to be lived in.  If you're a contractor or handyman and want to take on a project, it can be rewarding but consult a Realtor to make sure you win monetarily in the end. 

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David E. Monsour, Realtor

Keller Williams Keystone Realty, Gettysburg, PA 17325

717-319-3408

David.Monsour@Gmail.com

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  1. Lyn Sims 06/18/2010 02:44 PM
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Topic:
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Tags:
fix up or move in ready
gettysburg real estate
gettysburg fixer upper
gettysburg foreclosure
gettysburg home

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Rainmaker
420,953
Jean Hanley
Specializing in Folks Who Want To Buy/Sell Homes
Coldwell Banker Kivett Teeters

I actually just closed on one that was so perfect, move-in ready doesn't even begin to describe it.  What a great feeling for my buyer.

June 15, 2010 07:57 PM
Rainmaker
407,594
Karen Monsour
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!
Coldwell Banker Fort Lauderdale Beach

Makes me wonder how sane I was with you and Amy as toddlers, pregnant with Ashley, and living in 2 bedrooms, 1 bath - half a kitchen...in the middle of the winter, using a kerosene heater...while we added 3,200 sq. ft. on to the front of the house...that's a tough decision...

Sidebar - when those construction workers gave you a hammer and nails and left you close to the windows at 2.5 years old - I almost had a heart attack,  LOLOL!

June 15, 2010 08:00 PM
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Rainmaker
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David Monsour

ABR - www.realty-insights.com
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Additional Information

The Gettysburg Homes and real estate information blog is my way of giving back to Gettysburg's people and my personal sphere of influence. The objective is to provide real time real estate information and it's potential effect on Gettysburg, PA.

The current real estate market is far from what one would call "normal." Changes are constant, which requires professional realtors to be knowledgable and capable of shifting with the market. The governments attempts to stimulate the market has also caused a steep learning curve for most buyers and sellers in the market. An understanding of the policies and procedures is just one way I can help you to the successful sale or purchase of a Gettysburg, Pa property.

I work both as a Gettysburg buyer agent, and a Gettysburg listing agent. I also enjoy the challenge of finding quality investment properties and helping buyers to ensure a desired profit margin.

If I can help you in any way feel free to call or send me an email. Quick response time and great communication are always my goal.

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