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Every home buyer has a different situation and specific goals that factor into their decision-making process. From investment properties to considering different types of properties, we’ve compiled a list of some frequently asked questions. Below you’ll find helpful considerations and resources to assist you on your real estate journey.
What should I look for when considering investment properties?
If you are looking for an investment property, there are different considerations to keep in mind. Think about the property’s proximity to local amenities, what the neighborhood and larger community offer, and the potential development of that area. Furthermore, you’ll want to examine nearby rentals and vacancies, looking at the current rental market as a whole. Major employers in the area and average rental prices are also factors that could impact the return on your investment. After you purchase an investment property, ensure it is properly maintained. If you don’t want the stress that can come with being a landlord, check out Windermere Property Management. It’s a great local option here in Kitsap County.
What are the pros and cons of a fixer-upper?
Fixer-upper homes are all about the potential they offer to homebuyers. From repairs to renovations, fixer-upper homes can vary widely. For example, a fixer-upper may need all new flooring and new siding, whereas another property may need roof repairs, cosmetic fixes, and some appliances replaced. If you are looking for a smaller-scale renovation, look for homes for sale that require cosmetic projects like new interior and/or exterior paint, fresh carpeting, and basic landscaping maintenance. More expensive projects include re-roofing, replacing HVAC systems, and full-scale room remodels. While fixer-uppers can be exciting for those who are handy or know a great, local team of contractors, projects may run long and over budget, supply costs might rise, and the market might change by the time the house is ready to move into or rent. With these types of scenarios in mind, it’s best to talk to your homeowner’s insurance company in advance to understand what’s covered. While fixer-uppers have a lot of potential, it’s up to you to turn that dream into a reality. You want to ensure the return on your investment will be fully realized.
What are the pros and cons of a turnkey home?
Turnkey homes are also called move-in ready because they’re ready the day you receive the keys. If you’re purchasing a property to rent out for passive income, then a turnkey home can be advantageous. It’s ready for you to rent right away. A turnkey property may be a new construction home or a recently remodeled listing that is in excellent condition. You don’t have to worry about renovations or repairs. However, there’s typically more competition for turnkey homes vs. fixer-uppers. Homes that are move-in ready also tend to be priced higher.
Is co-buying a home right for me?
If you want to invest in real estate but can’t afford it on your own, you may be thinking about co-buying. It involves a lot of coordination and communication. All involved parties must be on the same page. Consulting a real estate attorney is essential so that they can iron out the details of the agreement, such as down payment, mortgage payment, and home repair responsibilities. You’ll also need to find a lender who is familiar with and supportive of co-buyers’ needs. There are also risks involved in co-buying a property. What if the co-buyer is unable to uphold their end of the deal if their financial situation changes? Could co-buying with a family member or friend put a strain on your relationship? Carefully consider your situation and different potential outcomes.
Utilize a local real estate expert
Whether you’re looking at investment properties, buying a fixer-upper or turnkey property, or considering co-buying, a local real estate expert will benefit you in many ways. Their insider knowledge of the local real estate market will help you make well-informed decisions and avoid making any costly mistakes. A great agent will also have a network of excellent local lenders, home inspectors, repair workers, and more. Contact one of our highly-rated agents to get started.
