Is the low inventory of homes in the Richmond area is making you nervous that nothing will come up you want to buy? Or maybe it’ll come up and be gone so fast you never even have a chance to see it? I get it. I’ve been hearing this from buyers a lot lately; so, let’s talk about alternative home buying options in a low inventory market. There are two other options that people reach for in a low inventory market: ⠀⠀⠀⠀⠀⠀⠀⠀⠀
When inventory is low and the type of homes or size of home you want may not be available new construction is one of the first alternatives that comes to mind. In order to get the home you’d like building becomes the best option for some. Building is great; it means having a newly designed home inside and out with the newest features and best mechanics. Building a brand new home does come with a premium though and you’ll be subject to building where ever the builder you like is setting up a new neighborhood. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
Sometimes the location of available new construction homes isn’t the ideal spot. Maybe the neighborhood is too far out or the builder in the neighborhood you like isn’t right for you. This is where one of my favorite options comes in – renovating a home. Renovating a home has a lot of benefits.
1. You often will get more for your money compared to new construction.
2. You can choose a neighborhood closer to your ideal area.
3. you get a refreshed home.
4. You aren’t paying the profit margin of a home that’s already been renovated and is now being sold to you.
That’s a win-win in my book. I know what you’re thinking, “I don’t have the money to renovate a home, Jess.” That’s okay! There are wonderful loan programs out there made for these situations. You don’t have to have all the cash on hand to do the renovation work. I talked about how this works a little in my #QASunday InstaStory (I saved it in the highlights for you.) The short of it is this – there are several loan programs for renovating your own home. Some you may have heard of are 203K Loans, HomeStyle Loan, or another version of a renovation loan. Each of these loan types has different perameters and details – like down payment required, credit score, etc. – but in general they allow you to borrow up to a certain amount and this amount can include the purchase of your home plus the budget for the renovations.
I am not a lender so of course I recommend you discuss these loan options in further detail with a licensed loan officer. There are many things to know about renovation loans but here are a few of the most important things you need to know:
Renovating a home can be a wonderful alternative to building or settling on a home you don’t love. Don’t get me wrong, renovating comes with its own set of highs and lows, but I have found the process to be similar to building. You just need a team to guide you – a good REALTOR®, a good lender, and a good construction manager. If renovating a home sounds like something you’d be interested in shoot me an email and lets talk a bit more.
Jessica Deleo is a licensed agent in Richmond, Virginia with One South Realty Group. All information provided is of my own opinion and intended for educational purposes only. Read full disclaimer.