With limited homes on the market and changing priorities, many younger homebuyers have begun to rethink their “must-haves” in the home search. They are now more open to purchasing dated homes that need renovating.
This opens up a great opportunity for homes that may not have been considered before. Also, those looking to move quickly may now be more willing to make greater compromises in their preferences than they were just a few months ago.
From Fixer Upper to Fully Customized
Most millennials have had to compromise on the size and condition of their starter homes recently, with many purchasing older homes in need of repair just to be able to attain homeownership. Over two thirds, or 68 percent, of millennials would now be interested in a fixer-upper, according to a new Clever survey, which polled 1,000 Americans looking to purchase a home. In fact, they rather like the idea of paying a little less for a home that they can customize to their specific taste and lifestyle.
With the popularity of HGTV shows based around renovation and interior design, the appeal to be creative in the home buying process has grown. In fact, in the past 12 months, millennials have completed more home projects than the silent generation, baby boomers and Gen Xers… combined.
Learn About Renovation Lending
With home renovation loans, like the FHA 203k loan, home renovations are simplified for buyers by allowing them to borrow money for both their home purchase and improvement and repair costs using only one loan. In addition, eligible buyers can qualify for a down payment as low as 3.5%. This provides buyers the best opportunity to build their dream home with minimal money down. Buyers would also likely gain instant equity in the home as well.
So, if you see a listing that needs some renovation, don’t shy away from giving it a closer look and think about what the home could be, with a little work.
*Not all borrowers will qualify. Contact us for more information on fees and terms.
“’Dated Homes’ No Longer a Deal Killer?” Realtor Magazine, 17 July 2020, magazine.realtor/daily-news/2020/07/17/dated-homes-no-longer-a-deal-killer.
Leonhardt, Megan. “68% Of Millennials Would Buy a Fixer-Upper-Here’s How the Property Brothers Say You Can Avoid Regret.” CNBC, CNBC, 23 Jan. 2019, www.cnbc.com/2019/01/22/property-brothers-advice-for-the-68-percent-of-millennials-who-would-buy-a-fixer-upper.html.