Many buyers come to my office with the idea that they can save a lot of money on their first home by buying something that needs work. They may have been searching for homes on the Internet and come across several priced well below the average for the area. What they are not prepared for is the reality of what a handyman special needs.
These are usually houses that need major repair. They are most likely not livable in their current condition. They may need electrical, plumbing, or structural repairs. In many cases they can not be financed with a conventional mortgage due to their condition and require special financing such as a rehabilitation loan in which the cost of repairs needed are added to the base price of the house. This can price the house right out of the buyer's maximum loan amount.
If the buyer does not have experience with house renovation or doesn't have access to someone who can help them, they will have to pay someone else to get the house ready for them to move into. Most first time home-buyers will find major sticker shock when they speak with their first contractor. Sometimes the cost of the building materials are less than the cost to install them.
Another related cost to buying a house that needs a lot of help is the cost of living elsewhere during the renovations. The buyer may need to continue to pay rent for several months while also paying the mortgage payments on their new house. Can the first time home-buyer afford this? Probably not.
As you can see, I sure that a handyman special is the wrong choice for most first time home-buyers. The easy solution for many buyers is to look for listings that need cosmetic updating. These houses are priced higher than the "fixers" but they can be lived in as is. Renovations and updating can be done as time and finances allow. Most buyers will need help to see passed the 1970's carpeting or the hideous wall paper but a good buyer's agent will help them do that.
If you are looking for affordable housing in the Greater Hudson Valley of NY please let me know. If you are looking elsewhere I would be happy to refer you to a buyer's agent who will help you find the right home for you.
I'm Paddy Pizappi - Work with Me and You'll be Happy!
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Paddy Pizappi, Associate Broker for Buyer Representation
RJ Smith Realty - A Real Estate Solutions Company
Serving the Greater Hudson Valley of New York
from Pine Bush, NY at the corner of Orange, Ulster, and Sullivan Counties
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Agreed,
Coming from a family of builders, developers and contractors, I'm AMAZED at the dangerous things I've seen done / "updated" buy a homeowner with the best of intentions and no training or idea of what to do).
I think some of the "home shows" make it look way to easy. You need training and expertise to install that new Gas Line to the fireplace that's for sure.
My brother is an MD and sees people come in every weekend with injuries from falling off roof's cutting off fingers , or having things fly into their eyes.
I'd love to save some money by doing my own dental work but I'll' leave that to the Pros'.
Paying to have things done, you must always calculate on going over budget. It's not for everyone but there are quite a number that can get a good deal if they have the skills.
Hi Paddy - Nice post, some of these are real "money pits" and are only for the experienced handyman.
Thanks for visiting my site and leaving a comment on my blog post about the military posters. I just sent them to you so hopeully you have them all.
Julie Jalone in Sacramento
Isn't it funny how easy the shows make it seem. Stay turned for the adventures of my most recent experience with renovation. It was in 2001 and it still gives me nightmares.
Thanks for the comments.