h1>How Many Homes Need Considerable Repair?

There is an interesting trend in the real estate industry. More than 65% of existing homes are older than 25 years old. Around half of those old homes were built between 1900 and 1945. Many of those old homes are in need of updates, repairs, and remodels. A common problem for homeowners is not being able to finance the repairs that they need for their home. Many of these homeowners are living from paycheck to paycheck, can’t get access to financing for home repairs, and would be better off selling their homes for something more modern that they can afford or rent.

How many people spend nothing on upkeep for their home?

According to Harvard University, people of all income levels run into issues when budgeting for upkeep on their existing home. People with lower income levels, around the $32,000 range, have the most difficult time budgeting for home renovations. Thirty percent of people at this income level spend no money on upkeep for their home. However, people in the highest income group also can have trouble budgeting money for their home’s upkeep. The highest income bracket in Harvard’s research study had a group of 15% who did not spend money on their home’s upkeep.

What are the most expensive home repairs?

The most expensive home repairs typically involve structural issues of the home. A foundation repair job will cost as much as $11,000, maybe more. A roofing replacement can start at about $6,000, depending on whether the home needs a new roof deck. Over time, issues such as mold and water damage could be impacting areas of your home. It can cost as much as $6,000 to repair certain types of mold and water damage issues.

Other issues can be expensive as well. Many older homes may have problems with water lines and sewer drains, need new wiring, or a major overhaul of their HVAC. Homeowners pay as much as $2.65 per square foot for rewiring. A smaller home could have a price tag as high as $5,000. On the low end, new plumbing could cost as much as $6,000.

Financing home repairs can be pricey

For some people, the high interest rate of a home equity loan can be expensive, coming in at over 7% towards the end of October. Sometimes, a home equity loan or line of credit may not be enough to cover major repairs to a home, especially if they have been put off for quite some time.

For those with poor credit, a personal loan may be the only option. This will be a higher interest rate loan that will take longer to pay off and accrue more interest quickly. One of these loans could have an interest rate that is as high as 35%.

Working with a real estate investor to liquidate your older home

If you are an older home, you might want to consider partnering with a company like Houston Capital Home Buyers. We buy homes like yours with a cash offer. We take care of all needed repairs for when they go back on the market. We can buy your existing home as is, let you walk away with cash in as little as seven days.