Visiting the Hudson Valley should come with a warning – once you’ve experienced it, you will probably fall in love with it. Whether it’s the spectacular fall foliage, outdoor recreational adventures, breathtaking vistas, historic locations, or something else, each year many people are taken by the Hudson Valley’s many charms and decide to make the area their home.
To get a great deal on a home in the Hudson Valley, many people consider buying a fixer-upper to renovate. While you can save a lot of money with this strategy, there are some important things about buying a fixer-upper to consider. If you have some spare time and you are handy with a hammer, it could be a great way to get a bargain.
Make Sure It’s in a Good Location
The location of a fixer-upper is one of the most important things you should consider before buying. If a home is in a good neighborhood, making cosmetic improvements to the exterior and interior can result in a significant increase in the market value.
If you are new to the area, you can find out which neighborhoods are best by asking your real estate agent. A good agent will be able to give you information about the crime rates, local schools, the rate that home values are increasing, and other important information.
Your agent may also give you some important insights about places that you probably wouldn’t have discovered on your own.
Look for a Home with Good Bones
Not all fixer-uppers will be worth your time and money. Condition is very important to make sure the renovation costs won’t spiral out of control. Things like paint, carpet, and fixtures, for example, are easy to change, but if a home has a crumbling foundation or a leaky roof, repair costs could be significant.
The layout of the home is also important. Everyone’s preferences will be different, but spacious rooms with plenty of natural light are always good. Also, if the location of a room somehow feels wrong to you, it probably is. The layout should feel intuitive with easy access to all rooms and entrances.
Have It Inspected
Before you finalize the purchase of a fixer-upper, it’s important to have it inspected. A home inspector may discover important things that need to be addressed. You can then negotiate with the seller to have those things repaired before you close on the home. If the inspection turns up something expensive or difficult to repair, you may decide to walk away from that home and look for another one.
In addition to a standard home inspection, you may also want to consider other inspections. Although they do cost extra, knowing exactly what you are buying can give you peace of mind that your home will be a good investment. Additional inspections to consider include:
Roof Certification
This inspection identifies problems and provides an estimate of the time remaining until a new roof is needed.
Pest Inspection
A pest inspection will reveal damage from termites, ants, beetles, and other insects.
Sewer Line Inspection
A sewer line and septic tank inspection will make it clear if the system needs to be repaired or replaced.
Buying a Fixer-Upper & Being Realistic About the Work
A home renovation can be disruptive to your life and to those you live with. Parts of your home will resemble a construction zone during the renovation, and loud power tools may need to be used.
It’s also important to make sure you will have enough spare time. If you work long hours and have little free time, a renovation project will be difficult to complete. Even if you are using a contractor to do the work for you, you will still need to have someone present while people are working in and around your home.
Find the Right Home Renovation Financing
You will need a way to pay for the renovations you will be doing on any fixer-upper you buy. While a conventional loan will give you the money you need to purchase the home, you will still need to come up with the extra money for the upgrades you want to make.
Instead of using a conventional loan to buy a fixer-upper, a renovation loan may be a better choice. These loans allow you to combine the purchase of your home with the money you will need to renovate it. Repayment terms are similar to conventional loans, with 15 and 30 years being typical.
The amount you can borrow with a renovation loan is usually based on the estimated value of your home after the renovations are completed. Eligibility requirements for these loans are similar to conventional loans.
While it is possible to do some of the renovation work yourself, with a renovation loan you will generally be required to use a general contractor for the majority of the project. How much you can do yourself will vary depending on your lender.
Renovation Loans from TEG Federal Credit Union
The Hudson Valley is truly a great place to live. Whether you want to check out one of several wineries, explore the local food scene, or enjoy the area’s arts and entertainment offerings, you’ll always be able to find something interesting to do. And with its reputable school system and friendly neighborhoods, it’s a great community for the whole family.
If you are interested in purchasing a fixer-upper in the Hudson Valley, a renovation loan from TEGFCU is a great way to finance it and get the money you need to complete the renovation work. Our interest rates are competitive, the closing costs are low, and pre-approvals are free.
Click below to learn more about how one of our renovation loans can help you buy a fixer-upper in the Hudson Valley.
