Should You Buy A Fixer-Upper?
A big question you’ll want to answer before shopping for a home is how much work (and money) you’re willing to put into your new house. Some homebuyers are looking for a home that is “turn-key”, or ready to move in, while others may be more willing to take on a project. While a fixer-upper may come with a lower purchase price, the cost of renovations and repairs, along with the timeline and overall stress must be factored into your decision. So, is it worth it to buy a house that needs work, and what work is worth doing?
Pros of Buying a Fixer-Upper
Lower Purchase Price: Obviously the biggest pro of buying a fixer-upper is that they often come with a lower price tag compared to move-in-ready properties, allowing buyers to potentially secure a larger or more desirable home within their budget.
Customization and Personalization: Now by no means am I saying new construction houses suck, but a lot of times if they are built by investors, they are not built with as much care and consideration as you might like. Buying a house that needs work provides an opportunity to customize and personalize the space according to your preferences and lifestyle. You have the freedom to choose quality materials, finishes, and design elements that align with your vision for the home.
Potential for Increased Equity: By investing in renovations and improvements, you have the potential to increase the equity in the home over time. Strategic upgrades can enhance the property's value, providing a return on investment when it comes time to sell.
Cons of Buying a Fixer-Upper
Renovation Costs: Renovating a fixer-upper is 1) not cheap, and 2) very time consuming. It really is a full time job. Buyers must carefully budget for the cost of repairs, renovations, and unforeseen expenses that may arise during the process.
Potential for Stress and Uncertainty: Taking on a fixer-upper requires patience, flexibility, and a willingness to tackle challenges along the way. You will have to get permits from the city, which can be a daunting and very time consuming process. Renovation projects can be stressful, especially if you have limited experience or resources.
Delay in Occupancy: Rome wasn’t built in a day! If you are impatient, renovating a fixer-upper may not be the best option. Permits can take forever to get, and you’re bound to face some delays in construction. So, don’t set your expectations too high for when your project will be complete.
What Work Is Worth Doing?
When deciding which renovations are worth tackling in a fixer-upper, it's crucial to prioritize projects that offer a high return on investment and improve the livability and functionality of the home. It may be beneficial to speak with an architectural / design expert who can help guide you. Here are some key areas to focus on:
Structural Repairs: This one isn’t very fun, but it is necessary. If your fixer-upper has structural issues, such as foundation problems, roof leaks, or termite damage, fixing these should take precedence to ensure the safety and integrity of the home.
Kitchen and Bathroom Updates: Renovating the kitchen and bathrooms can significantly enhance the appeal and value of a home. Focus on modernizing fixtures, updating cabinetry, and improving functionality to create attractive and functional spaces.
Energy-Efficient Upgrades: Investing in energy-efficient upgrades such as insulation, windows, and HVAC systems can lower utility costs and improve the home's sustainability. These upgrades appeal to environmentally conscious buyers and can add value to the property.
Curb Appeal Enhancements: First impressions matter, so investing in curb appeal enhancements such as landscaping, exterior painting, and driveway repairs can boost the home's attractiveness and resale value.
Cosmetic Updates: While cosmetic updates like painting, flooring, and lighting may seem minor, they can have a significant impact on the overall look and feel of the home. If you are worried about resale value, choose neutral timeless finishes that appeal to a broad range of buyers.
Buying a house that needs work can be a fun and rewarding project for those willing to invest time, money, and effort into renovations. While you are bound to face some challenges, strategic planning and working with a trustworthy team can help you create your dream home to enjoy for years to come!
P.S. - If you’re looking for a contractor team to help with renovations and design, I have a great recommendation! Reach out - carly.steinberg@compass.com
