Thinking about buying a home but feeling like it's just too expensive? The reality is, there are still options available, even if affordability feels daunting. One possibility is to consider a fixer-upper. Let's explore how purchasing a fixer-upper could be your pathway to homeownership and some strategies to make it a viable option for you.

What Is a Fixer Upper?

A fixer-upper is a home that’s ready to live in but needs some improvements. The level of work needed can really differ from one house to another. Some might just need a fresh coat of paint or new carpets, while others could require bigger fixes like a new roof or plumbing upgrades.

Fixer-upper homes often come with a lower price tag compared to move-in-ready properties, according to a recent survey from StorageCafe. The study found that these homes typically cost around 29% less than turnkey homes, based on local market conditions. The reduced price point reflects the additional work required to bring these properties up to desired standards.

According to a recent survey, more buyers are looking at homes that may require some additional work right now.

If you're interested in finding a way to start your homeownership journey and are ready to put in some effort, a house with hidden potential could be a great choice for you.

Tips for Buying a Home That Needs Some Work

Before you purchase a home that might need some renovations, there are a few important things to consider:

• Pick a Good Location: While you can always renovate a house, the location is something you can't change. It's important to choose a neighborhood you appreciate, ideally one that’s experiencing rising property values and more local amenities. This approach ensures that even after investing in repairs, your home’s value will likely increase over time.

• Budget for Surprises: When you're fixing up a house, it's important to expect the unexpected. Things can often take more time and cost more money than you initially planned. So, be sure to set aside some extra room in your budget for any surprise repairs or unforeseen issues that may arise during the renovation process.

• Get a home inspection: Before making a purchase, bring in an inspector to evaluate the property. They’ll identify what repairs are needed, helping you avoid costly surprises down the line.

• Plan Your Priorities: When you're figuring out what to focus on first, it can be useful to group your goals into categories. Consider your home in three parts: the must-haves, which are the essential repairs; the nice-to-haves, which are upgrades that would improve your daily life; and the dream-state features, which are the luxuries you can plan for down the line. This approach will assist you in prioritizing your tasks and keeping your budget in check.

The ideal home is the one you make your own after buying it. By choosing a fixer-upper, you can customize it to fit your style and save on the initial purchase price. With some thoughtful planning, budgeting, and a touch of creativity, you can transform a house that needs some TLC into your perfect home.

Real estate agents excel at spotting homes with great potential. They understand the local market and can steer you toward properties where strategic upgrades can boost value. With their assistance, you’re more likely to discover a house that fits your overall budget and offers opportunities for meaningful enhancements.

Bottom Line

In today’s market, the cost of homeownership can seem daunting, and discovering a move-in-ready home that suits your budget can be tough. However, if you're willing to invest some effort, you can turn a fixer-upper into your dream home gradually. Let’s look at the possibilities and help you find a place that meets your needs.