Buying a fixer-upper home is often an attractive prospect for homebuyers who are seeking a budget-friendly opportunity, or DIY-ers who are ready to create and customize their own living space.
However– just like any major investment– it’s important to approach the purchase of any house with a thorough understanding of the pros and cons that come along with it.
There are definite advantages and disadvantages to buying a fixer-upper home, and making a note of each of them will help you to make the best, most informed decision possible in your home buying journey.
PRO: Lower purchase price
This is a big reason why people who are working within a budget gravitate toward fixer-upper homes– they often come with a much lower purchase price, and are often priced below market value to account for their condition.
This affordability can give you some extra flexibility in your budget, allowing you to invest more in renovations and improvements. Eventually, you can bring the property up to market value through hard work and sweat equity.
CON: Higher renovation costs
Often, homes that are priced higher require less extensive renovation or restoration. If they’ve been renovated, the costs associated with that renovation are reflected in the sale price.
Fixer-upper homes that are priced lower will typically require some renovations that could get costly.
Prior to making the purchase of a home, you should carefully assess the condition of the home and property. Having a full and clear understanding of the upgrades required can help you seek out estimates from contractors. You should also be sure to leave some room in the budget for “unexpected costs”– which always crop up with just about every construction or renovation job.
PRO: Personalization and customization
While looking online at houses, have you ever spotted one that you absolutely love– except for the hideous tile or carpeting?
With a fixer-upper, you’re often starting from something of a blank slate. This means that you get to choose the tile, the flooring, and the color schemes, rather than living with the choices someone else made for the home years ago.
If you have a unique sense of style, choosing a fixer-upper home might be perfect for you!
CON: Time and effort
Of course, choosing your own tile and flooring is more complicated and difficult than simply selecting one you like from a catalog. Often, you’ll also be the one installing that flooring– which means spending some time and effort on the project.
A fixer-upper might not be move-in ready– meaning that you’ll have to put in some hours before you can settle into your new home.
PRO: Investment potential and ROI
Fixer-upper homes can have serious investment potential! Purchasing a home for below market value and then making renovations and improvements to bring it up to today’s standards can dramatically increase its value.
If you’re looking to “flip” the house, your ROI could arrive sooner rather than later. Even if you’re looking to sell sometime in the near future, your improvements will certainly increase the home’s sale value either way.
Work with a professional
Before taking the plunge into purchasing a fixer-upper property, you should definitely work with the pros to help you accurately assess your decision.
This includes working with a professional home inspector and an experienced real estate agent, who will help you make the best possible decision for you, your wallet, and your family’s future.
If you’re interested in working with one of our agents, send over a message today– we’d love to chat with you!