1. Less competition
Typically, there is less competition for fixer upper houses due to the nature of them needing repairs and renovations. This means that you’re less likely to end up in a bidding war with multiple other buyers and having to offer more for the house than you would’ve liked to. Less competition means that the sale can go quicker and more smoothly, and you’re more likely to close the deal.
2. Lower purchase price
Due to the fact that fixer uppers are in need of repairs, they are typically priced well below market value, which makes them attractive for investors who are looking for more affordable properties. You’ll need to spend money on the home improvements and repairs however this can be spread out over time. The initial outlay of capital is lower, which makes these homes easier to access for more investors and the bottom line is that they can save money.
3. Easy to customize
One of the biggest advantages to buying a fixer upper property is the fact that they are customizable. Over the course of the home upgrade you can invest in the areas you choose, and you aren’t bound to a home that’s already finished.
So, if you’d like specific bathroom features you can add these, or if you’d like to add features that may make the house more appealing to renters, you can do that. Customizing the house according to your needs as an investor or home buyer can be extremely valuable later on, so this is a big plus.
4. Increase house value
Buying a house that needs improvements, means that you have the chance to increase the value drastically. You can choose specific upgrades that will add more value to the house and thereby fetch a much higher price if you decide to resell the house. It’s important to work out the value of your renovations before you begin, so that you can make sure to do the necessary improvements that will increase the home’s value the most.
5. Access to better neighborhoods
Often, houses in good neighborhoods that need a lot of upgrades won’t be flying off the market in a hurry. This offers buyers who may not otherwise have been able to afford purchasing a property in a better neighborhood, the chance to access an area with an affordable house and then revamp it.
6. Retain control
Another benefit to buying a house that needs improvements is that you have full control over the work that is done. You can make sure that every project is done according to the standard of quality that you’d like, and you can choose every feature of the project to align with the vision that you have for the home.
7. Lower taxes
Property taxes are calculated according to the value of the property at the time of assessment along with the local property tax rate. Which means that houses with a lower value will tend to have lower taxes. This will only be in effect until the upgrades have been done, however it can lead to a big saving for homeowners.
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