Looking to buy a home but feeling like almost everything is out of reach? Don’t worry—there’s still a path to homeownership, even if affordability feels like a major challenge. One option worth considering is buying a fixer-upper. Let’s explore why a fixer-upper could be your key to owning a home and how to make it work.
What Is a Fixer-Upper?
A fixer-upper is a home that’s livable but needs some improvements. The level of work varies: some homes might just need cosmetic touches, like removing old wallpaper or installing new flooring, while others may require more significant repairs, such as a new roof or plumbing updates.
Since fixer-uppers require some effort, they’re usually priced lower than move-in-ready homes. According to a survey from StorageCafe, homes needing work are typically about 29% less expensive than their fully updated counterparts.
This affordability advantage is one reason why more buyers today are open to homes that need a bit of TLC (see below).
If you’re looking for a way to break into the housing market and don’t mind a bit of hands-on effort, buying a house with untapped potential could be the right move.
Tips for Buying a Home That Needs Some Work
Before diving into a fixer-upper, here are some essentials to keep in mind:
1. Choose the Right Location: You can change a house, but you can’t change its location. Make sure it’s in a neighborhood you love or one with rising property values and increasing amenities. This way, your investment in upgrades can pay off over time.
2. Budget for the Unexpected: Renovations often take longer and cost more than anticipated. Build a cushion in your budget for surprise repairs or other unforeseen expenses that might pop up during the process.
3. Schedule a Home Inspection: Hire a professional inspector before purchasing to get a clear picture of any necessary repairs. This will help you avoid costly surprises down the line.
4. Prioritize Your Renovations: It’s easy to get overwhelmed with possibilities, so it helps to break down your projects into categories. Think in terms of must-haves (urgent repairs), nice-to-haves (convenient upgrades), and dream features (luxuries to add later). This approach can help you stay within budget and keep your efforts focused.
Remember, the best home is often the one you create. A fixer-upper gives you the chance to customize a property to fit your style while keeping initial costs down. With a thoughtful plan, a realistic budget, and a bit of vision, you can transform a house in need of TLC into your perfect home.
Real estate agents can be valuable allies in finding homes with hidden potential. Their local market knowledge helps identify properties where strategic upgrades can boost value, increasing your chance of finding a home that suits both your budget and your goals.
Bottom Line
In today’s market, where move-in-ready homes are often pricey, finding an affordable option can be tough. But with a willingness to put in some work, you can turn a fixer-upper into a home you love. Let’s look at what’s possible and find the place that’s right for you.
