Breathing New Life into Old: Buying Fixer-Upper and Distressed Homes
January 26, 2022
January 26, 2022
If it’s your dream to breathe new life into an older property, purchasing a home that needs some TLC — a fixer-upper or a distressed home — can be a smart financial investment while also providing you with a place to call your own.
When it comes to understanding fixer-uppers versus distressed homes, the two terms are often used interchangeably. Here are loose definitions to help you distinguish between the two:
Regardless of their condition, fixer-upper or distressed homes can be appealing to many homebuyers. In fact, according to a recent Freddie Mac survey, nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations.
The pluses of buying a fixer-upper or distressed home include:
Of the population that we surveyed, 61% said they would hire a professional contractor to renovate their home. To find professional contractors, you can start by getting recommendations from family, friends or neighbors. You can also check with the Better Business Bureau to see if complaints have been filed against a contractor or contracting company.
Once you’ve settled on a contractor, ask for references from similar projects to learn more about the quality of their work, whether they were on time and on budget, and how they were to work with. Try not to select a contractor based on only the price of their bid.
See more suggestions for working with contractors on home renovation projects.
There are loans designed to help pay for the improvements to your home, including Freddie Mac’s CHOICERenovation®, CHOICEReno eXPressSM and GreenCHOICE Mortgage® offerings.
Speak with your lender about the financing options available to you and which may best suit your needs.
To learn more about buying, repairing and renovating your home, visit My Home by Freddie Mac®.