Why Buy a Fixer-Upper?…Because It’s in Your Favorite Neighborhood.
When buying a home you will often hear, “you can change everything but the location.” Buyers in Hawaii are willing to pay top dollar to wake up to a view of the ocean, mountains, or monuments like Diamond Head. They will sacrifice square footage, yard space, or even parking to live in a location that meets their personal and professional needs.
What are you willing to do to move into your desired neighborhood?
A unit or home finally comes on the market in your favorite neighborhood but it’s an HGTV renovation special. Do you pass on the home because you desire a move-in ready home? According to realtor.com: “Despite the generally lower prices, just 11% of first-time buyers are willing to purchase fixer-uppers.” So, before hitting the gas and continuing your search, let’s consider a few things.
Things to Consider When Buying a Fixer-Upper
- Is this home priced lower than a traditional home in this neighborhood?
- Will the down payment be lower?
- What is the potential for appreciation?
- Are the renovations cosmetic or structural?
- Do you have money in your budget to finance renovations?
- Are you able to complete any renovations on your own?
There is a precautionary tale for those who buy a fixer-upper without adequate planning. Like blowing your budget or lengthy repairs that leave you washing dishes in your bathroom sink. Or building without the necessary permits. Buying a new home has its own challenges, if your life and finances can not accommodate unpredictability then forgo the fixer-upper for a sure thing. Secure a good real estate agent to help mitigate the challenges by connecting you with reliable contractors, getting quotes for repairs, etc.
Take a look at my co-listing with Kristeen Yasue at Kahala Towers. This 2 bedroom /2 bathroom condo will need a little TLC but the Kahala neighborhood might be your favorite. The building has recently undergone 12 million dollars in renovations! Kahala has the feel of a suburban neighborhood with all amenities of the city. There are luxury and traditional homes, beaches, parks, shopping, fine dining, and grocery stores. It is a short drive to Waikiki for those looking for a more active scene.
I believe the person who buys the fixer-upper is organized, creative, and patient. It will take a person with true vision to oversee a project and mastermind their own Hawaii haven. With a low inventory of homes on the market and historically low mortgage rates, would you consider buying a fixer-upper during this season?