Pros and Cons of Buying a Fixer

When is Buying a Fixer Upper Worth it?

When shopping for homes, you may come across a few that are exceptionally low priced. Then you find out why.

Extensive repairs may be needed to make the home livable much less turn it into an attractive piece of property.

But still… the low price is enticing.

This is the type of situation one encounters when buying a fixer upper. Buyers have the option of buying the house at a low price and fixing it up so it becomes more valuable.

This can be a smart move, but only if you end up making money on your investment.

This article will take a look at what’s involved in buying a fixer upper so you can determine whether or not it’s worth it.

Buying a Fixer Upper is a Good Idea If…

Buying a fixer upper comes with its share of benefits. It may be the right decision if the following circumstances apply.

You Want to Design Your Own Home

Buying a fixer upper gives you a lot of creative options. Being that the home will probably need an extensive remodel, you will be able to make a lot of choices in the reconstruction process. Just make sure all your alterations are up to code and properly permitted.

You Have the Money for Renovations

Your budget should include the costs involved in buying your home while giving you enough left over for renovations. This should be carefully considered before finalizing your purchase.

You’re Getting a Great Deal

If the price you’re paying on the home, along with the renovations still leaves you with a total that is lower than the current market value, you may want to jump on the deal.

Buying a Fixer Upper is a Bad Idea If…

You’re on a Fixed Budget

If you’re on a fixed budget, you may be better off with a home that does not need many renovations. In this case, you will know exactly how much you are spending, and you won’t have to worry about reconstruction costs going over budget as they often do.

You Don’t Know a Lot About Design

When you rebuild, you will have to make a lot of decisions about design and layout. If you don’t know much about these aspects of building, or you think you may not be qualified to make the right decision, you may end up with a home that does not live up to its full potential.

You Need to Move in Right Away

Reconstruction is a long process that often runs over the estimated time you were originally quoted. During reconstruction, your home may be unlivable. If you need to get into your home right away, opt for one that’s move in ready. 

Buying a fixer upper can get you a great deal in today’s market. It’s important to consider the time and money to get your home up to the standards you expect.