If you are looking for a new home, buying a property that needs a significant renovation project may be the best value for your money. The struggling real estate market and sea of foreclosures has created some real opportunities for buyers. However, most of the best values are properties that are not yet ready for new residents.
Cash-strapped homeowners often let their properties fall into disrepair, and disgruntled borrowers sometimes intentionally vandalize properties from which they are being evicted. These challenges for sellers create tremendous opportunities for buyers who are willing to take on substantial renovations. While foreclosed properties in good condition can be sold quickly at decent prices, heavily damaged houses must be deeply discounted to sell. That’s where you come in.
With the right contractor, you can turn a seller’s headache into a great deal for yourself. New City is expert at taking outdated, neglected and vandalized properties and bringing them back to life. With a renovation project on these types of properties, New City can update floor plans, stabilize structural problems, update aging mechanical systems and upgrade finishes. And if the house is too small, we can even build a new addition to create the living space you require.
How much does this cost? Usually much less than buying the same home all ready to move into. Here’s why. Most homeowners don’t want to do a large renovation project. So, the typical buyer for this type of property is an investor. When a real estate investor calculates what an old house is worth today, he or she starts with the expected market price for the property once it’s been fixed up. Then, he or she subtracts out the costs of selling it (about 10%), fixing it, buying it, carrying it while it’s under construction, and a profit (10-15%).
As a homeowner, you have a clear advantage. You only need to buy the house, fix it and carry it. You don’t need to sell it, and you’re not calculating a profit. So that extra 20-25% the investor needs to make his or her business work becomes built-in equity for you in your new home. With these kinds of numbers, you can always outbid an investor and still come out way ahead. Plus, since you control the scope of a renovation project, you get exactly the features in your home that you want – for less. More home for less money.
For more information on the kinds of projects New City offers to achieve this goal, see:
