Fixer-uppers have become a trend in the real estate industry. Shows about house flipping, homeowner upgrades, and buying a house to renovate and live in, are popular on network TV. The truth is, there is a lot to consider when buying a fixer-upper. Weighing the pros and cons can help you decide if this is the right choice for you. Keep reading to discover the pros and cons of buying a fixer-upper.
Pro: Customizable. When people think of fixer-uppers, the first benefit that comes to mind is the potential for the house to become your dream home. Fixer-uppers require work to bring them up to date. During this process, homeowners can pick precisely what they want their home to look like. The possibilities are endless, from the color of the walls to the house layout and beyond.
Pro: Low entry cost. Purchasing a fixer-upper has financial benefits, including negotiating prices and obtaining renovation loans. These properties can be purchased at a lower price, leaving room in the budget for renovations. Save by considering options like Fannie Mae Homestyle and Freddie Mac CHOICE Renovation loans, which finance both the purchase and renovations. Additionally, lower property taxes may be possible as the home’s value is assessed after renovations.
Pro: Location. The location of a property is a crucial factor in the real estate market. In-demand areas typically have higher listing prices, making it challenging to purchase a home in those neighborhoods. However, investing in a fixer-upper can be a strategic way to gain access to these sought-after locations. Imagine being just a short 5-minute drive from the nearest shopping center, surrounded by top-rated schools, and with easy access to local parks right in your backyard. It’s the perfect combination for a desirable and convenient lifestyle.
Con: Expensive repairs. Renovations and repairs can be a financial burden, especially if multiple systems or areas of the house need to be repaired or replaced. It can also add significant time and stress to the renovation process, as repairs may need to be prioritized and completed before any cosmetic updates can be made. Additionally, unexpected issues may arise during the repair process, further driving up the cost and prolonging the renovation timeline.
Con: Time-consuming. Completing large home projects requires a significant investment of time and dedication. While television shows may depict renovations done quickly by experts and edited to show progress, real-life projects can be hindered by unforeseen delays. Factors such as shipping delays, inclement weather, product shortages, or obtaining necessary permits can all contribute to a longer timeline for completing renovations. It’s important to anticipate and prepare for these potential setbacks to avoid frustration and disappointment.
Whether you opt for a ready-to-move-in property or a fixer-upper, any major investment comes with important considerations. Seeking the guidance of a real estate agent can assist you in making the best decision to suit your lifestyle and financial means.
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