Is a Fixer-Upper the Right Choice for You?

Thinking about buying a home but feeling like everything is just out of reach? Here’s the good news: there’s still a way to achieve homeownership, even if affordability feels like a major hurdle – and that path might be through a fixer-upper. Let’s explore why purchasing a fixer-upper could be the key to homeownership for you and how to make it work.

What Is a Fixer Upper?

A fixer-upper is a home that’s in livable condition but needs some updates. The amount of work varies: some homes may only need minor cosmetic touches like wallpaper removal or new flooring, while others might require bigger projects like a roof replacement or plumbing upgrades.

Since these homes need a bit of TLC, they’re generally priced lower in comparison to similar move-in-ready homes. In fact, a survey from StorageCafe shows that fixer-uppers tend to cost about 29% less than homes that are ready to go. This is one of the reasons why, according to a recent survey, more buyers are open to considering homes that need a little extra work right now (see below).

If you’re ready to get your foot in the door and willing to put in a bit of effort, a home with untapped potential might be the right fit for you.

Tips for Buying a Fixer-Upper

Before buying a home that may need some work, here are a few key points to consider:

• Choose the Right Location: While you can improve a house, you can’t change its location. Look for a neighborhood you love or one with rising property values and nearby amenities. This way, any money you invest in upgrades can increase the home’s value in the future.
• Budget for Unexpected Costs: Renovating a home can often take more time and money than planned. Make sure to keep some extra funds in your budget for any surprises or unforeseen repairs.
• Get a Home Inspection: Hire a qualified inspector before purchasing. They’ll provide insight into necessary repairs, helping you avoid costly surprises later on.
• Prioritize Your Projects: Decide what to tackle first by categorizing your goals. Think of your home in three ways: must-haves (essential repairs), nice-to-haves (upgrades for convenience), and dream features (luxuries for the future). This approach helps you stay on budget and focused.

Remember, the perfect home is one you make your own after purchasing. A fixer-upper offers the chance to customize a home to your taste while saving on the initial price. With planning, budgeting, and a bit of vision, you can transform a house in need into your ideal home.

A knowledgeable real estate agent can help you find homes with great potential. They know the local market and can guide you to properties where smart improvements can add real value, ensuring you find a house that suits both your budget and your vision for the future.

Bottom Line

In today’s market, where the price of homeownership can feel overwhelming, finding a move-in-ready home within budget is often tough. However, if you’re willing to invest some effort, a fixer-upper can become your dream home over time. A local real estate agent can guide you through your options and help you find a property with the potential to fit your vision and budget.