HOME BUYING (We’ve Been Going About It All Wrong)
It’s true. We’ve have been going about it all wrong.
Most buyers are looking for the best home they can find in their budget. They have the same mission.
This is why when something really great does come on the market at a fair price, there can often be multiple offers which drive up the price. Buyers get outbid on properties and it’s a very frustrating process.
The solution to the problem is to change your tactics.
Don’t shop the same way other buyers are shopping. Change the game so you can change the odds in your favor.
Instead of looking for the best home at the best price, look for the best priced home in the area where you want to live.
Even the homes that look horrible online. Yes, those ones, too.
There are many great homes on the market that are just not marketed very well. The agent takes crappy pictures, does subpar marketing, and the buyers overlook it. The home gets no activity, often resulting in price drops and less competition if you make an offer.
If you pay attention, you may find that the home is much better than the pictures led you to believe.
Even if a home has good pictures but is obviously NOT what you are looking for – the kitchen is awful and you hate the style –still go look at it the home.
There is specialized financing available that allows you to purchase that home and do a complete remodel. Think of those shows on HGTV, where they take a dog of a home and transform it into something spectacular.
You can do that. Instead of an investor making a profit, you can move into a home you love and have built-in equity.
Let’s say you have a budget of $300,000 to purchase home. There are so few homes that meet your needs, and the ones that do sell in bidding wars which drives the price point above what you are willing to spend. The new homes you have seen that you like are across town and farther out than you would prefer to drive each day for work.
Solution: Look at homes in your ideal area of town in the $250,000 price point. Even the dogs. Find a home that has a great lot in a great location. We can help you buy that home and do a $50,000 remodel on it BEFORE you move in.
If an investor bought the home for $250,000 and did a $50,000 remodel on it, do you think they would try to sell the home for $300,000? No way. They would try to sell it for $350,000, because that is likely what it is now worth.
250K purchase price + 50K remodel = $300,000 mortgage, but $350,000 in home value.
This is the Value Driven Approach in action. This is how you get a home you love at the best price, often saving $20,000-$50,000.
In summary, you could buy a home, have contractors trick it out HGTV style, and move in with equity. Just like the picture above. Crappy kitchen vs Awesome kitchen.
Most homeowners do improvements to their home right before they sell it. Wouldn’t it be nice to enjoy your remodeled house before you have to sell it? Remodel financing is available for current homes OR on the home you are purchasing.
It’s time to change the game and put the odds your favor.
If you have questions, feel free to reach out.