Anyone who’s been buying or selling a home recently knows that we’re in the midst of a seller’s market. Homes are selling for as much as they did since before the Great Recession (or more, in some places), and no decent property stays on the market long. Many areas are so hot that the most in-demand homes usually receive multiple offers. How have people been dealing with this housing market, especially Millennials, who are finally reaching homeownership age?There’s one key thing that’s been separating Millennials from the Boomers who came before them: 68% of Millennials report being open to buying a fixer-upper, as opposed to only 46% of Boomers. Some of this is due to age and fitness, of course, but some of it is also due to the enormous difference between how the market is now compared to how it was back then. Taking on a fixer-upper is one of the ways to deal with this housing market and other financial difficulties, such as student loans.Benefits of a Fixer UpperIn many areas, a fixer-upper may really be all that’s available. While some less-bustling cities are not feeling the pressure as badly, cities like San Francisco, California are really feeling the pressure of not having enough housing available for all of their residents. That’s not even touching the issue of affordable housing, which is even more in jeopardy right now.Fixer-uppers inevitably stay on the market longer than their move-in ready counterparts, because of the nature of the work involved and the hidden issues that may be present. This can be an undeniable opportunity for Millennials or any interested home buyer. However, while fixer-uppers can provide a solution to many of these housing issues, they’re not something to be taken on lightly. Just because a fixer-upper is initially cheap doesn’t mean the final estimate will be.Difficulties and SetbacksBuying and planning to renovate a fixer-upper should never be a snap decision. Before investing in such a property, prospective buyers should always create a list of jobs that need to be done, such as cleaning the gutters and re-patching holes in the walls, in addition to the costs of those jobs. Otherwise, it’s possible that they might not know the full scope of what they’re getting into. Inspections are particularly crucial for these homes, because there may be many issues that buyers can’t initially see. However, if a buyer, Millennial or otherwise, is prepared to handle the work and costs of the project, it can be a sound investment and a great way to get into an exclusive neighborhood or area.With the cost of home ownership consistently rising, it makes more financial sense for Millennials and younger generations of people in America to look to saving on costs by seeking out a fixer upper.
tag