Fixer-uppers may typically be considered the domain of house flippers, but prospective homeowners are also getting into the game of buying and restoring properties in need of TLC.
People purchase fixer-uppers as their primary residences for all kinds of reasons beyond their upfront affordability and potential return on investment. For example, a fixer-upper that’s also a historic home comes with, well, history: These properties may have rich stories and restoration can transform them into character-filled period pieces. They can also serve as a blank canvas for a homeowner with a strong sense of style—or a combination of both.
While having a creative vision for a home in need of updating is one compelling motivator for buying a fixer-upper, it shouldn’t be the only one. Here are a few other factors to consider before diving in.
When to consider buying a fixer-upper
Deciding to buy a fixer-upper demands a delicate balance of time, energy, and (of course) money.
You want something affordable upfront
Fixer-uppers are often listed for less than other homes on the market because of their renovation and repair needs. People who can see beyond imperfections and who are willing to invest over time in structural and cosmetic upgrades may find a lot of value in these cheaper properties. You may also encounter less competition from other buyers.
Note that a fixer-upper may not save you money overall compared to a move-in ready home once you’ve factored in both the purchase price and the cost of renovations. That said, you’ll likely increase your property value quickly as upgrades are made, you’ll already have more equity than if you bought a more expensive home, and you’ll spread the expense out over time.
You want more space for your money
Your dollars may go further on a fixer-upper if space is what you’re after. It’s possible to get a larger house and/or more property for less money if you’re willing to buy a home with a lot of flaws and invest in renovations over time. You may also be able to find a home in an area you otherwise wouldn’t be able to afford—buying the worst house on the best block, so to speak.
The house needs (mostly) cosmetic upgrades
Cosmetic fixes are faster and cheaper to complete than major structural upgrades, so you’ll want to know what issues need to be addressed, how urgent they are, and how much they’ll cost. If your fixer-upper needs significant work on HVAC, plumbing, sewage, or electrical systems, a new roof or foundation, or a complete remodel of the kitchen or bathroom(s), you’re in for a lot more money, time, and professional labor than with projects like painting walls, refinishing floors, and replacing doors.
You love to DIY
If the bulk of your renovations are cosmetic and you enjoy DIY, taking on a project house may be enjoyable and rewarding. It’s less expensive to do some of the work yourself (versus hiring professionals), and you get to get your hands dirty. However, know your DIY limitations, and don’t take on more than you can handle.
You can be patient with the process
Fixer-uppers are labors of love, and if you plan to move in right away, you’ll likely be living with some mess for a while as you work on renovations. Or you’ll be waiting around in your current space until upgrades are complete. Either way, you won’t see the payoff of moving to your finished home right away.
When you should avoid a fixer-upper
If the opposite of any of the above is true, you may want to rethink buying a fixer-upper. If you need a house that’s move-in ready right away, or if you’ll max out your budget with the purchase alone, a fixer-upper probably isn’t for you. You should also do your due diligence: do not skip inspections, and take time to get quotes for necessary renovations so you know what you’re getting into before you make an offer and sign a contract.
A home inspection is an absolute must to identify any major structural damage or issues. The Spruce also recommends investing in a roof certification (if the seller hasn’t provided this information), a pest inspection, a sewer line inspection, and engineering reports to uncover natural and geological hazard risks.
