Filed under: Real Estate Tips
Purchasing an unusual or unique home can be thrilling. After all, these one-of-a-kind homes are truly special and may reflect your personality and taste. Before you purchase one of these homes, however, there are a few things you need to keep in mind to ensure you are making a sound financial decision.
1. Considering the Resale Value
While you may think your unusual home is priceless, you may have a hard time finding someone who is just as passionate about the home’s unique features as you are. When purchasing one of these homes, resale may be the furthest thing from your mind, but the reality is that life changes and you may find yourself having to put the home back on the market.
Unfortunately, unique and unusual homes can be quite difficult to sell. While your home may be worth a lot of money, finding someone who is willing to put that much money toward the purchase of your home may be nearly impossible. Furthermore, even if there are other people who appreciate the unique features of your home, finding someone who is in the market to purchase a home or who has enough money available for the purchase can also prove to be quite difficult. Therefore, when purchasing an unusual home, you need to be prepared to sit on it for some time before you are able to sell it later.
2. Finding a Lender
When determining the value of a home, appraisers look at other homes that are similar to the home that is being appraised. Since an unusual home is a one-of-a-kind home, appraising the value can be quite difficult. Since the appraisal process is so difficult with these homes, it can be equally as difficult to obtain a loan. This could be a problem for you when it comes time to purchase the home, and it can also prove to be a problem when try to sell the home at a later date. After all, the lender wants to be sure it will be able to get its money back if you fail to repay the loan as agreed upon. If the lender is not confident of the value of the property or if the lender thinks the property will be far too difficult to sell, you may run into some serious problems with obtaining the necessary financing.
Generally speaking, larger lenders are unwilling to take risks on unusual properties. Therefore, in order to increase your chances of finding a lender, you may need to work with a small local lender that is familiar with unusual properties in the area. Even with these lenders, you may find yourself facing a high interest rate or you may be asked to put down more than the standard 20 percent down payment.
3. Thinking About Lifestyle
Another factor to consider when purchasing an unusual home is your lifestyle. While a cathedral that was converted into a home many sound amazing, cleaning and caring for the property may be overwhelming and difficult. You may also have difficulty with furnishing a unique home, or the property may be located in an area that is very inconvenient for you in terms of commuting to work or pursuing other interests. You should also consider the costs that will be involved with maintaining the home.