If you are thinking of buying a resale home, be prepared to spend a lot of time shopping resales that need renovation and/or heavy on deferred maintenance.
Orlando Realtor Kathy Llamas showed resales to a couple for almost two months and was about to lose them to a ‘we decided to wait’ excuse. They kept seeing homes they liked, but could not afford after remodeling or renovation estimates were proposed.
For example, if they looked at home for $300,000 and the renovation estimate came in at $60,000, the $360,000 price was too high either in fact based on a mortgage approval or their budget.
Kath’s prospects did not want a new home, but Kathy suggested they look at one with a base sales price of $300,000 just to see and understand what the buyers could get for their money. for a home ready to move in with no other work needed.
They looked at two new homes, bought one in two days, and closed in 30 days. It happens.
What also happens is resale buyers after actually seeing, touching and feeling what they can get for the actual money they want to spend, will make more informed and therefore more confident offers on the resales they see.
So, my advice: Tell your Realtor that while you are interested in shopping resales, you would like to see at least one new home in the price range of the resales you will be shopping. Regardless of the decision you then make you will know more about ‘why’because thanks to the fixed base price of the new home you toured, you have a much better idea of the value of the resales you see.