A fixer upper can be very tempting when you are looking to buy a home. Whether you are a first-time homebuyer or real estate veteran, here are some
pros and cons to consider before purchasing a property that needs major renovating.
1. A less than perfect house often allows buyers to own in a neighborhood they otherwise couldn't afford. A fixer upper located in a desirable neighborhood may often sell for less than the surrounding homes.
2. When redoing a home there is the opportunity to create a space all your own and make it exactly how you would like.
3. There are a lot of variables specific to each property, but often, there is a possibility for profit in resale once the property is renovated.
You may be overwhelmed with the amount of work, time and money it takes to renovate. Always have a back up plan to access funds or credit if any unforeseen hurdles are discovered during the renovation.
• Tip: It may be wise to bring professionals with you to walk through the property before you buy to avoid underestimating the work and cost.
There is always a possibility that you could lose money on your investment. It is common to go over budget on repairs and renovations. The housing market is another variable that can be unpredictable.
Whether you're hiring a contractor or doing the work yourself, the renovation process is often stressful. Consider the commitment before you buy, especially if you plan on living on the property while doing the renovation.