It’s no secret 2017 is living up to be a seller’s market, just as it was predicted to be. That means a shortage of home inventories to choose from and often resulting in a bidding war inclusive of above-asking prices.
Boil that down, it’s like 10 mice fighting for the last piece of cheese, and one is always willing to pay more for it.
Sellers this year have seen the highest gain in purchase price at $44,000 since making history back in 2007. And, while economics make a good case for selling your home, sellers should remain aware of what happens after the sell — the home buying journey.
With home inventory low, some homeowners have opted to forego the home buy exercise for fear that they, too, would be forced to enter a bidding war for a home that catches more than one potential buyer’s attention — especially when choices are limited.
To address this concern, homebuyers who have just recently sold their home are now presented with two options:
- Join the bidding war when they find their “perfect” home (and cross their fingers that no other buyer is eyeing that same home),
- Reset their expectations; find a home that’s less-than-perfect; and, consider a renovation project.
We know how emotionally exhausting the first option can be, only to “rinse and repeat” if at the end of the day they end up on the losing end of a bidding war. That’s not always the best experience.
But, let’s take a closer look at the second option — the often-overlooked alternative, and rightfully so, as that sometimes can be due to the stigma that comes with a home renovation.
The perhaps surprising news is that more and more people are opting for a home makeover, as nationwide spending for home improvements reach $317 billion. And, thanks to TV networks like HGTV and DIY spotlighting renovation shows, a home rehab is more within reach than it has ever seemed in the past.
It’s about resetting your expectations about your future forever home and looking beyond what’s currently in a home for the potential.
And, if you don’t have a home remodel fund in your back pocket, not to worry; there are several mortgage options now available to homeowners that allow you to roll the cost of renovation into your mortgage loan.
Many of these programs aim to provide borrowers with the ability to find affordable financing to cover the renovation of a property. And these programs often cover smaller projects like kitchen upgrades to larger ones like in-ground swimming pools.
Scott Brown, vice president of renovation and construction at SWBC Mortgage explained why the renovation trend is growing. “In today’s day and age, homeowners’ desires have shifted from embracing traditional living quarters to creating unique living spaces — often appreciating the “old charm characteristics” that come with older homes, while still wanting to infuse some modern-style upgrades,” he said.
The moral of the story is this – don’t discount that less-than-perfect-home as a contender. With a little bit of imagination and a lender that can provide some creative options, your perfect home may be closer than you think.
Click here to download a free renovation e-book to find out what you need to know before starting a home renovation.
SWBC Mortgage Corporation has been providing mortgage services since 1988. They are a full-service mortgage lender headquartered in San Antonio, with in-house underwriting, processing, and funding for superior, responsive service, and timely closings. SWBC Mortgage is a wholly owned subsidiary of SWBC, a diversified financial services company.
Equal Housing Lender. Loans are subject to credit and property approval. SWBC Mortgage Corporation. Corporate office located at 9311 San Pedro Avenue, Suite 100, San Antonio, TX 78216. NMLS # 9741( www.nmlsconsumeraccess.org)
Brendan George is SVP of retail loan production at SWBC Mortgage. Brendan has been with SWBC Mortgage for over 8 years and has over 33 years’ experience within the mortgage industry. He can be reached at BGeorge@swbc.com.
Source: San Antonio Business Journal