Pros and Cons of a Fixer Upper

Have you been thinking about purchasing a house and considered a fixer upper? As with anything, there are pros and cons to purchasing one. So, we made this list of some things you should consider when buying a fixer upper.

PROS

•          You can design, build, and renovate the house to be exactly the way you want it to be! This means all the cool features you can think of. Want an internal vacuum to be able to sweep crumbs into? It’s possible! Want a secret room? Go wild!
•          You can decide which areas of the house you want to invest in more. If you want a fabulous kitchen, you can decide to spend more on it instead of being stuck with what the house already has.
•          The house will become more than what you paid for it. It’s great to make a future investment and potentially flip the house for more money!
•          Fixer upper houses are generally about 8% below market value!
•          Property taxes will be less because they are calculated based on the home’s sale price. Lower price = lower taxes

CONS

•          You might not be able to move in right away, so you’ll need to be able to live somewhere else until it’s ready
•          Renovations can be costly.
•          The exact total of the renovations can be hard to calculate so you won’t know exactly how much you’ll spend until it’s over.
•          There can be complications. Things might go wrong which could cost you more money in the long run.
•          If you want to make structural changed, a permit is about $1000
•          It can take a long time to finish a fixer upper!

Make sure you ALWAYS get a home inspection first! The inspector can probably tell whether it is a good investment depending on the condition of the house. With a written report from the inspector, you might be able to get the seller to lower the house if there is structural damage as these things do not usually raise the values of the house (think the walls and roof).

A fixer upper might be best for you if you’re handy and can do some of the renovations yourself. Finding one with a good structure can potentially save you some money. Remember that you will need to have the time and motivation to dedicate to fixing up the home. If possible, get a quote for all the renovations and make sure to add like 5-10% more for possible complications – it’s better to overquote than underquote. If you’re doing renovations yourself make sure you take into account all the materials you will need. You want to subtract this from the home’s projected market value (which can be found by researching the surrounding homes).

Want to see how much you qualify for? We’re ready to help! Fixer upper or not, we’re here for you. Call or text (954)559-4644 for a FREE consultation