First-time Fixer-Upper BY MICHELE LERNER
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irst-time homebuyers always face the down payment hurdle, but in a housing market with rapidly rising prices and limited inventory, they’re also challenged by heavy competition. One method of beating the competition is to look for a house that needs some work rather than a move-in ready property.
then have a five-year plan to take care of smaller projects down the line.”
“Generally first-time buyers lack the skills or the time to take on projects, so they prefer a home that’s been rehabbed,” said Dawn Bricker, a Realtor® with Century 21 Advantage Gold in Cherry Hill. “Unfortunately, they’re getting blocked from buying those homes by competition, especially from cash buyers.”
“You can change the interior of a house, but you can’t change a location,” Lisella says. “Agents can help buyers see they have a blank canvas and an opportunity to customize their home, which can be a huge benefit if they’re not finding what they want on the market.”
Real estate agents can help first-time buyers see the potential in a less than perfect home, which may widen the possibilities to include ones that need work. “The key is to help first-time buyers avoid feeling overwhelmed by projects,” said Zach Lisella, a Realtor® with Coldwell Banker Realty in Allendale. “They need to realize not everything they want to do is crucial to do before or even after they move in. Agents can help them prioritize what needs to be done first, usually the kitchen or bathroom, and
While not every house is a good fit for a first-time buyer, a house that needs work can provide an opportunity to live in the location they want, said Lisella.
Pitfalls and Benefits of Fixer-Uppers To help your clients determine whether a fixer-upper could be a good choice, it’s important to ask them about their timeline for moving and their threshold for what’s livable, said Mischa Fisher, Chief Economist of HomeAdvisor in Denver. “If the buyers need to move in right away, they’ll need to determine their personal tolerance for living in a place that needs work,” said Fisher. “They need a plan about how to manage living there or a way to have the work done before they move.”
“Agents can help buyers see they have a blank canvas and an opportunity to customize their home, which can be a huge benefit if they’re not finding what they want on the market.”
NEW JERSEY REALTOR® | May/June 2021 | 23
