Are you feeling inspired by your favorite fixer-upper HGTV show and want to take on one of your own? Before you tackle a major house project and investment (or what turn into a money pit), weigh these pros and cons that will depend on your unique situation.
We’ll consider your budget, needs, preferences and lifestyle in these pros and cons to keep in mind and help make your decision:
PROS
Lower Price. Yes, you will need to spend money on renovations on a fixer-upper house, but it will have a lower list price and down payment requirement based on the local market value. In fact, research shows that fixer-uppers generally cost about 29 percent less than move-in ready homes. If you have ambition and room in your budget for any extra unknown renos that come up, this could be a good fit!
Less Competition. It’s more likely that you will have less competition from when putting an offer on a fixer-upper. Other buyers may be reluctant to put in the elbow-grease and extra money to transform it into their dream home, so you’ll have the upper edge.
Bigger Chance to Customize. Think about it, when you buy a fixer-upper, you have a blank slate as the new homeowner to change up whatever you’d like (within your budget, of course). Demo the kitchen if you don’t like it, make the living room seem bigger by demoing walls for an open floor plan, add a back deck or patio for an extension into outdoor living. You will also have the freedom to choose the exact materials, colors, fixtures, finishes, and contractors that you want.
CONS
Renovations Could Be Expensive. Remodels could be pricey, depending on what is on your wish list and any surprise reno costs you didn’t expect in your original budget – especially if your fixer-upper is an older home. It’s a risk because you could end up barely breaking even. Before you buy, hire an inspector to scour every square inch of the house, so you know what needs to be repaired beforehand and what lies ahead.
Living in Construction. Because you know demo, construction, and renovations are in the plans from the start for a fixer-upper, you’ll have to live in a construction zone for as long as it takes – unless you have the luxury of being able to live somewhere else before you move.
MORE TIPS
A couple of other considerations to think about before deciding whether or not a fixer-upper is a fit for you are:
- Choose your neighborhood wisely. While you can repair a house, you can’t relocate it, so make sure your fixer-upper is in a neighborhood you like, one with increasing market values, or a promising area with a growing number of amenities. This will all contribute to your home’s value down the road.
- Prioritize. Think about what you want to see, have, and experience in your home. Categorize them into: the must-haves, the it-would-be-nice-to-haves, and the dreamy luxuries you can add later.
A local, experienced real estate agent can help you explore what’s possible and find the right fixer-upper homes with great potential. Connect with Paige Bird, a successful local real estate agent who has worked for 20 years in the Myrtle Beach area real estate market. During her tenure, she assisted more than 2,200 families in their home-buying and selling journeys. Paige is renowned for her extensive experience and commitment to high ethical standards, which uniquely positions her as the go-to agent for those looking to achieve their 2024 real estate goals.
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