Buying a fixer-upper home can be a great option for those looking to save money on their initial home purchase, but is it really worth it? In this blog post, we'll explore the pros and cons of buying a fixer-upper and help you decide whether it's the right choice for you.
Pros:
- Lower Purchase Price - One of the most significant benefits of buying a fixer-upper is the lower purchase price. Typically, these homes are priced lower than a typical upgraded home, making them an excellent option for buyers on a budget.
- Customization - When you buy a fixer-upper, you have the opportunity to customize the home to your liking. From choosing the flooring and paint colors to updating the kitchen and bathroom, you can make the home truly your own.
- Investment Potential - If you're willing to put in the time and money to renovate a fixer-upper, you can potentially make a significant return on your investment when it's time to sell vs buying a completely updated home where property value increase really is just determined by the market strength.
Cons:
- Unexpected Costs - One of the biggest risks of buying a fixer-upper is the potential for unexpected costs. Renovations can be expensive, and if you run into unexpected problems like plumbing or electrical issues, your renovation costs can quickly add up.
- Time and Effort - Renovating a fixer-upper takes time and effort. You'll need to have a plan in place and be prepared to devote a significant amount of time to the renovation process.
- Stressful - The renovation process can be stressful, especially if you're living in the home while the renovations are taking place. Dust, noise, and the general disruption of your daily routine can take a toll on your mental health. Not only this but piecing together contractors who will do a fantastic job can be extremely difficult.
- Going over on you renovation budget. Something we see quite a bit, is buyers going way overboard on the renovation. You want to just focus on the items that truly make an impact on the homes value. For example, if you have a luxury home you’ll want to renovate with luxury materials that appeal to the value of the home. However, if you have an entry level home price you won’t get the value out of it by putting the most expensive materials. Any great agent should be able to give a rough idea and help guide you in cost benefit upgrades!
So, is buying a fixer-upper worth it?
Ultimately, the decision to buy a fixer-upper comes down to your personal preferences and financial situation. If you're willing to put in the time and effort to renovate a home and have a solid plan in place for managing the renovation process, buying a fixer-upper can be a great way to save money and customize your home to your liking.
