Yes, affordability is a challenge right now. But that doesn’t mean buying a home is out of reach!
If you’re open to a home that needs a little TLC, you might unlock opportunities others overlook. Whether you’re handy or plan to hire help, a fixer-upper could be the key to getting into the market. Let’s dive into what you should consider before taking the leap.
Fixer-Upper Homes: Hidden Gems or Money Pits?
Ever seen a house with great potential but a long to-do list? That’s a fixer-upper! It’s a home you can live in but may need updates—whether it’s a simple facelift like fresh paint and new floors or bigger projects like a roof replacement or plumbing overhaul.
Fixer-uppers may require some work, but they come with key benefits that make them an attractive option:
1. They’re More Affordable – Homes needing repairs typically sell for about 29% less than move-in-ready properties, according to StorageCafe. If you’re struggling to find a home within budget, a fixer-upper could be the solution.
2. Less Buyer Competition – Since many buyers prefer move-in-ready homes, fixer-uppers often have fewer offers, giving you more negotiating power.
3. You Can Build Equity Quickly – Renovating allows you to create a home that fits your style while increasing its value. With the right improvements, you could see a strong return on your investment.
According to The Mortgage Reports:
“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.”
Fixer-Upper Dreams? Here’s What to Consider First
Buying a fixer-upper can be exciting, but it’s not for the faint of heart. Before you dive in, ask yourself:
🛠 Do You Have a Plan? Can you handle renovations, or will you need to hire help? Be honest about your time, budget, and skillset.
📋 What Comes First? Prioritize essential repairs before tackling cosmetic updates. You don’t have to do everything at once!
📍 Is the Location Worth It? Make sure your investment pays off by choosing a neighborhood with strong home values and great amenities.
🔍 Inspections Are Non-Negotiable: A professional inspection can reveal hidden problems that could make or break your decision.
💰 Plan for the Unexpected: Renovations rarely go exactly as planned. Set aside extra funds for unexpected costs.
Talk to a Lender About Your Financing Options: Thinking about buying a home that needs a little TLC? Renovation mortgages could be a great option, but they often come with restrictions like budget limits and set timelines. Chat with a lender you trust to make sure you know all the fine print before moving forward.
Bottom Line
Fixer-uppers aren’t for everyone, but if you’re open to rolling up your sleeves, they can be a great way to find something that fits your budget in today’s market.
With the right mindset and a bit of patience, you could turn a house with potential into a home that’s perfect for you.
If you’ve come across a fixer-upper that checks your boxes, let’s chat and see how we can make it work!