Perks of Buying a Fixer-Upper

You don't have to put your home buying plans on hold just because affordability is tough right now. 

Getting some eyes on those fixer-upper homes may open new doors if you are handy or can afford to hire someone that is. Here’s some things you need to know so you can make a better informed decision.

Fixer-Upper, What's That?

A fixer-upper is a house that can be classified as livable, but it will need some work. Some of these homes might only need some cosmetic updates, while other may need more extensive work. That could mean there are some needed outer and inner repairs related to the roof, siding, electrical, plumbing, foundation, etc.

These homes may still be worth considering even though they may need some extra love (TLC):

1. Usually a Bit Cheaper. Fixer-uppers are usually cheaper that their move-in-ready counterparts. A survey from StorageCafe (2024), states that fixer-uppers come with prices that are about 29% lower, and this makes them a great choice if you can't find homes in your budget.
2. Less Competition. You will usually have less competition on those fixer-upper houses when you want to make an offer, because a majority of home buyers will be more focused on the move-in-ready homes. 
3. Building Equity Faster. A fixer-upper gives you more creative freedom in designing the home to better fit your style and needs. You can increase your home's value and see a bigger return on your investment when making the right kind of renovations. Be sure to research and/or discuss your ideas with a REALTOR, as they will know what will help you best!

As The Mortgage Reports notes:

“If you’re a house hunter who’s not afraid of sweat equity, buying a fixer-upper could be your ticket to homeownership. Doing so could lead to big savings, even in some of the nation’s largest and most popular housing markets. Plus, adding the right features could help your investment.”

Important Knowledge About Buying a Fixer-Upper

You really need to think about the many possibilities that come with purchasing a fixer-upper home. 

• Do You Have a Well-Thought-Out Plan? It is best to be prepared with a written out plan of action. You need to make sure you have the budget, time, and skills to do the repairs if you won't be hiring a professional. You will also have to deal with the fact that part of your home may look like a war zone for days or weeks until things are finished up. 
• The More Important Repairs and Upgrades: Keep in mind that you don't have to work on more than one project at a time. You will only become more overwhelmed if your bite on more you can chew. Take your time and space out each project so it makes sense with your budget and lifestyle. You don't want to be house poor.
• Location! Location! Location!: Make sure you are purchasing a home in an area that is gaining value, and has the things the locals love, like parks, shopping, restaurants, and entertainment. You want this adventure to be worth the investment. 
• Get That Home Inspection: A home inspector can do a thorough inspection before you buy that fixer-upper. They will give you a report (with pictures) that is dozens of pages long (yes, even on newer homes), and this will break things down for you. It will be easier to plan out what needs to be repaired now versus later, and you will have a better idea about the possible renovation costs that will be involved with each project. Be sure to lean on your home inspector and REALTOR, as they can help you before you start those updates.
• Always Budget for Surprises: Like anything in life, things rarely go as perfectly planned. Make sure you have some extra money set aside to cover the unknown things that may come up. This may include extra building materials, increased costs, longer than expected repair timelines, etc.  

Lender And Financing Options: Did you know there are some specialized loan programs designed for home buyers to purchase some of the fixer-uppers out there that usually need to be purchased with cash? Be sure to talk to a local lender about these options, as they come with some requirements like repair amounts, additional appraisals, and timeline limits.

Final Thoughts

Fixer-uppers can be a great way to find something in your budget if you don't mind doing a bit of work. 

You might be able to create that "perfect" home with the right planning and mindset. You would also feel like a more accomplished homeowner, as things would be done to your specific vision.

Would you consider a fixer-upper if it fit your budget and goals? If just said "yes", let’s connect to explore what’s out there. 

References

Centopani, P. (2024, April 30). Fixer-uppers could be the key to affordable home buying. The Mortgage Reports. Retrieved February 6, 2025, from https://themortgagereports.com

Mohan, M. (2024, May 1). Top Cities Where Fixer-Uppers Cut The Path To Homeownership: LA, Chicago Lead The Way With Most Fixers For Sale, Biggest Savings. StorageCafe. Retrieved February 6, 2025, from https://www.storagecafe.com/blog/best-cities-to-buy-a-fixer-upper/