When it comes to buying a home, you basically have three options: buy a move-in ready home, build your home, or purchase a fixer-upper. Depending on how specific buyer needs are with a property, any of these three could be a great option. Some people shy away from purchasing a fixer-upper because of the notion that it will be a pocket-draining experience. But before we dissuade you one way over the other, let’s discuss the pros and cons of purchasing a fixer-upper.
PRO: Well, the first one worth mentioning is also the most obvious one. You pay a significantly lower price for the initial purchase of the house. This will also give you a smaller down-payment and if you intend on getting a home loan, your APR will most likely be lower given the burrowing amount is less.
CON: On the flip side, where you may be saving up-front costs to begin with, you may exceed your budget quickly with renovations. It is easy to overlook the costs of even little projects, so we recommend that you research what renovations will be needed and calculate that into your entire budget. This also includes maintenance updates or repairs such as plumbing, electrical, or appliances.
PRO: Similarly to building your home, buying a fixer-upper allows you to access the creative side of your brain and curate your dream living experience. You can break down walls to open up space without any guilt. Remolding your bathroom has never been easier. Is there an extra bonus room that you don’t want? Then add in another wall and give yourself an extra guestroom and a home office.
CON: On the contrary, your creative ideas may become too much of a project, meaning, you’re biting off more than you can chew. What you don’t want is for your home to become a permanent construction zone. How can you enjoy your new home if you aren’t able to finish it? Like any goal, we recommend that you assess if the project is realistic, timely, achievable, and specific.
PRO: Tackling the project of a fixer-upper can be a positive family bonding experience. Through sweat and tears, you and the entire team (even if it’s just two of you), will be able to create your ideal living spaces. The most rewarding thing you may experience is being able to create a life in the space that you worked so hard to complete.
CON: Like any challenge that takes a team to tackle, you can run into conflicts. When you buy a home that is complete or near-complete, you already know what you’re getting yourself into. You and your family have picked apart the things you like and don’t like and have made compromises. When you’re doing renovations and all possibilities are on the table, this can lead to stressful situations. In case a creative difference or conflict arises, be sure to have a project plan and commit to sticking to it.
The Bottom Line
Fixer-Uppers are ideal if you want to save on up-front costs when purchasing a home. It also gives you the ability to rebuild and renovate spaces if you are not set on building an entire home from scratch. Be sure to plan your budget accordingly as renovations can be expensive. Lastly, remember to renovate and fix up the home as a team!
We hope that everyone is staying safe and healthy during this historical time in our lives. The Shaffer Team consists of real estate professionals in Southern Utah, specializing in selling homes. We work with talented photographers, stagers, and lenders to ensure your home buying or selling process is efficient and smooth. We are committed to keeping you informed through the entire sales process and educating you on anything you may not understand. Call us to learn more about the area and to understand how we can help you find your dream home at 435-525-0079.