A recent report released by RealtyTrac suggests that homebuyers should consider older homes when purchasing if their intention is to find a good deal. Homes that are twenty years or older have a tendency to have lower sale prices than new builds. These homes also have consistently drawn less interest from the investor buyers when inventory is limited. There are some downsides to purchasing an older home in the Scottsdale area, but the positives often outweigh the negatives.
First, older homes may need repairs or upgrades and the price can often reflect that. In the Scottsdale area, investors have shied away from older homes that are in need of improvements. For the traditional buyer the upgrades needed can be a way to customize the home for the new buyer and allow these traditional homebuyers the opportunity to purchase more home for less money."The high percentage of homes that are at least 20 years old and likely in need of some major repairs is eye-opening," Jake Adger, a RealtyTrac spokesman said. "However, given the low inventory of homes available for sale in today's market, this challenge of aging U.S. housing supply can also be an opportunity for buyers looking for a bargain and homeowners looking to update their living space and improve the value of their homes."
Homebuyers in the Scottsdale area looking for a home that is priced slightly lower should consider an older home. Typically, numbers support the overall cost being 10 percent less than a new construction build. Currently a single-family home that was built in 1990 or later has an average cost of $233,000 compared to the same square footage with a new build costing $256,000. While older homes may need repairs including upgrading heating or cooling systems for increased efficiency, or a bit of interior remodeling, there are mortgages available that allow the buyer to roll the cost of improvements into the price of the home.
This practice, known as the 203(k) option allows buyers to make improvements to the home while borrowing additional money in the original loans to make these improvements. For buyers in Scottsdale looking to personalize their home purchase, this option can allow homebuyers to purchase a larger home and make improvements to upgrade the property.