Save money purchasing a new home and make an offer on a house in need of minor repairs.
Homebuyers seeking an inexpensive home can benefit from the real estate industry's competitiveness by purchasing a home that needs minor repairs. A home in a stellar neighborhood in need of a bit of TLC can sell considerably lower than better-maintained turnkey homes in the same neighborhood. If you make a decent offer, a seller can be eager to sell a house other homebuyers bypass. Follow a few guidelines, exercising caution, and purchase a home in the neighborhood of your dreams at a reduced price.
Instructions
1. Hire a professional home inspector before making offers on any home. Minor repairs are one thing, but shelling out cash for serious problems makes the home-buying process difficult. Order an inspection of the entire home to provide a list of required repairs in addition to the expenses required to make those repairs, Our Family Place advises.
2. Compare the costs of making minor repairs to the listing price. Knowing the required amount to make minor repairs provides leverage to offer at a reduced price or request the seller to complete the repairs as a part of closing agreements.
3. Negotiate the final selling price. Factor in one percent of the home's value for yearly repairs and maintenance on top of the cost of the initial repairs before making an offer. If the cost to make the repairs in addition to the list value of the house equals less than 28 percent of your pretax income, but still remains pretty close, make an offer within the 28 percent.
4. Ask the seller to make the final repairs themselves as apart of closing agreements, if they refuse to lower the final sales price to a more reasonable figure.
Tags: before making, closing agreements, make offer, minor repairs, minor repairs, purchasing home, reduced price
