Buying a house is no easy feat if you’re on a tight budget. It’s no surprise many frugal house shoppers opt for a fixer-upper over something more move-in ready. A fixer-upper house comes with its own set of advantages and drawbacks.
What Is A Fixer-Upper?
A fixer-upper or “Handy-man Special” is a house available at a lower purchase price because it requires major maintenance work. While you can likely still live in a fixer-upper, you’ll need to spend a lot of time and money on structural and/or cosmetic improvements. You may benefit from a fixer-upper if you’d like more house for your money or are interested in flipping it to make a profit.
Should You Buy A Fixer-Upper?
A fixer-upper house may be a good option for one house shopper and a bad idea for another. Consider your budget, needs, preferences and lifestyle when you ask yourself this question.
Here are some pros and cons of fixer-upper houses to bear in mind.
Pros
A lower purchase price: Although you’ll need to spend more on renovating it, a fixer-upper house will come with a lower list price and down payment requirement.
Less competition: Generally speaking, there is less competition for the “Handy-man Special” home, so you’re more likely to land the home you’d like at a great price.
Chance to customize your home: Once you make your purchase, you have the freedom to do whatever you’d like to it. Don’t like the kitchen? Remodel it. Wish there was a deck? Build one.
Quality control: When it comes to renovations, you’re in charge. You can choose the materials, colours, contractors and everything else.
Cons
Expensive renovations: Depending on the renos, you may end up barely breaking even – or spending more money on a fixer-upper.
Difficult budgeting: While you can run the numbers and estimate how much your renovations will cost you, it’s almost impossible to come to an accurate figure.
Unexpected issues: Even if you get an inspection, there are almost always unexpected issues, especially if the house is older.
Long-term construction: Unless you live somewhere else while you’re renovating your fixer-upper, you’ll have to live in a construction zone for months or even years.
At the end of the day, it’s all about the time you’re willing to put in and your overall goal for your project. Keep or sell, making a house a home is part of the fun.
Contact a REALTOR® today to find your next project home.
Looking for an experienced REALTOR ® that specializes in real estate across Windsor and Essex County? At Royal LePage Binder Real Estate, we are focused on helping you unlock your future.
