While Chip and Joanna Gaines have long made the fixer-upper a top contender for many potential home buyers, deciding on whether you should move forward with one can seem like a challenging decision.
Sure, we see glamorous home renovations completed in what feels like seconds on a tv show, but the reality is that fixer-uppers require a lot of TLC to bring to life.
Buying a fixer-upper can be a tempting option for homebuyers looking to save money or put their own personal touch on their new home. But is it really worth it?
In this blog post, we’ll explore the pros and cons of buying a fixer-upper to help you make an informed decision.
First, What is a Fixer-Upper?
Generally, a fixer-upper is a home that needs significant repairs or renovations. As its name suggests, it is a property that requires much “fixing” to bring it “up to par.”
Renovations could range from simple cosmetic updates like new paint and flooring to more extensive long-term, expensive projects like replacing the roof or updating the plumbing and electrical systems.
The Pros of Buying a Fixer-Upper
While renovations can feel like a headache to many potential buyers, there are many great reasons to opt for a fixer-upper, so we encourage you to consider one before you instantly jump into a new build.
Here are some of the reasons to consider buying a fixer-upper:
- Lower purchase price
One of the biggest advantages of buying a fixer-upper is the lower purchase price. Because the home needs work, it will likely be priced lower than comparable homes in the area that are move-in ready. This can make it a great option for homebuyers who are on a tight budget or looking to save money.
- Opportunity for customization
Another benefit of buying a fixer-upper is the opportunity to customize the home to your liking. When you buy a move-in ready home, you’re essentially buying someone else’s design choices. With a fixer-upper, you can make the home your own by choosing the finishes and features that you want during the renovation process.
- Potential for increased value
If you’re willing to invest time and money to renovate a fixer-upper, there’s potential for a significant return on investment when you’re ready to sell. By updating the home, you can increase its value and potentially sell it for more than you paid for it.
Potential Cons of Buying a Fixer-Upper
As with most things, there are downsides to buying a fixer-upper. We highlight three potential cons below.
- High renovation costs
While a fixer-upper may be priced lower than a move-in-ready home, the cost of renovations can quickly add up.
Depending on the extent of the work that needs to be done, you could be dealing with tens of thousands of dollars in renovation costs. This can be a daunting prospect for homebuyers who are already on a tight budget.
The good news is that you can prioritize and budget out projects based on your personal budget and home renovation timeline and goals.
- Uncertainty
When you buy a fixer-upper, there’s always a degree of uncertainty involved. You never know exactly what you’re getting into until you start tearing down walls and uncovering hidden issues. This can be stressful for homebuyers who prefer a more predictable process.
- Time-consuming
Renovating a fixer-upper can become quite time-consuming. Depending on the extent of the work that needs to be done, you could look at months or even years of renovations. This can be difficult for homebuyers who need to move in quickly or who have busy schedules.
So, Is Buying a Fixer-Upper Worth It?
The answer is that it depends.
Before you say, “yes” or “no” to a fixer-upper, it is important to weigh your individual circumstances and priorities against the home you are interested in.
If you’re on a tight budget and willing to invest time and effort to renovate a home, a fixer-upper could be a great option. It can also be a good choice if you’re looking for a home that you can customize to your liking.
However, if you’re not prepared for the high renovation costs or the uncertainty of the process, a fixer-upper may not be the right choice for you. It’s important to carefully consider your budget, timeline, and goals before deciding.
Tips for Purchasing a Fixer-Upper
If you’ve decided that buying a fixer-upper is the right choice for you, here are some tips to help you navigate the process:
- Get a thorough home inspection
Before you buy a fixer-upper it’s essential to get a thorough inspection. This will help you identify any major issues with the home and estimate the cost of repairs. A home inspection can also help you negotiate the purchase price or have the seller cover any repairs that you feel may be out of your budget or timeline.
- Create a realistic budget
It’s important to create a realistic budget for your renovations and stick to it. Be sure to factor in unexpected costs, as there are often surprises that arise unexpectedly. Use your home inspection as a tool to help you prioritize, plan and budget all renovation costs before you decide if this purchase is affordable and reasonable for you.
Making a Final Decision on a Fixer-Upper
Purchasing a fixer-upper has both pros and cons that must be considered before making a decision.
On one hand, buying a fixer-upper can be a cost-effective way to own a home in a desirable location, and it allows you to customize and renovate the property to your liking. It can also be a great investment opportunity if the property appreciates in value after the renovations are complete.
However, on the other hand, the cost and time associated with the renovations can be much higher than anticipated, and there is always the risk of unexpected issues arising during the renovation process. Additionally, there may be a significant amount of stress and uncertainty involved in living in a home that is undergoing major renovations.
Ultimately, the decision to purchase a fixer-upper depends on individual circumstances and preferences, and it is important to weigh the pros and cons carefully before making a commitment.
If you need help with your decision or are on the verge of becoming a new homeowner who’s in the market for a fixer-upper, I can help. Contact me today to get started.
