Pros and Cons of Buying a Fixer Upper
Buying a fixer upper home can be a risk. It depends on a lot of different factors including:
- How much the other homes in the neighborhood are worth
- The home you are looking at buying is well below market price
- How much work and money has to go into the fixer upper
Taking on a fixer upper home is not for everyone. If you’re about to embark on this journey consider these questions:
- Are you willing and ready to live in this house during the renovation?
- What’s your timeline for getting this renovation finished?
- If something goes wrong, will you be able to handle the timeline change and increased cost?
These are all important things to think about. If you’re still having trouble deciding, here are the pros and cons of buying a fixer upper.
Pros of Buying a Fixer Upper
- Discounted Price
- Make It Your Own
- Increased Value
Generally, homes for sale that need a bit of work don’t cost as much as a move-in-ready home. If the price is higher than it should be, it can usually be negotiated down because of the work that needs to be done.
When you buy a fixer upper home, you are expecting to make a lot of changes to it. These changes can be done exactly the way you like them. You don’t have to live with someone else’s style – you can choose your own. This is especially nice when you plan on staying in the home for an extended period of time.
Making renovations to your home, if done smartly and in the right places, can increase the value of your home significantly. The room that adds the most value to your home is the kitchen. If you can only renovate one thing, do the kitchen.
Cons of Buying a Fixer Upper
- Unexpected Costs
- Time Consuming
- Extra Work
There is almost always a surprise expense when working on a fixer upper. It’s important to get an inspection before buying to eliminate some of the surprises. But even with an inspection, there can be foundation problems, mold, rot, etc that are hidden behind walls. Make a budget before taking on the renovation and stick to it. If an unexpected cost comes up, make changes somewhere else in order to save some money.
Fixer uppers are not move-in-ready and they take of a lot of time to become ready. Have patience when working on a renovation. There’s so much that goes into renovating, there bound to be an order that comes in late or a project that takes longer than expected.
If you plan on helping with the renovation in order to save money, be prepared to take on another part-time job. It will be a lot of hard work and sweat, but the outcome will be worth it.