I showed this home recently and I thought this would be some amazing content for my blog. This home is definitely a diamond in the rough (If you are interested let me know). However, the work required to make this home new and fresh again maybe too much for some and just enough for others.
What do you think? As a first time home buyer, would you take on a project like this? Why or Why not?
Just as I said in the video above “every buyers renovation risk is different”. When home buying it is always good to purchase a home that need some TLC (Tender, Love, and Care) Why? Because it gives you the opportunity to increase your equity. Homes will sale for what they are worth. If you purchase a freshly renovated move in ready home you are likely purchasing it at the top of its value. However, if you purchase a home that requires some minor renovations, you likely will be purchasing it below the market value. Homes that need TLC typically always sale well below homes that are renovated.
With that being said, if you purchase a home that needs TLC you create the opportunity to make the repairs yourself and recoup the equity on the back end. Once you update the home, finish the basement, re-do the kitchen, or even add a room for example you instantly increase the properties value.
Be sure to alway keep this in mind when you are home shopping and even when you are selling.
Happy Real Estate