Affordability is definitely a challenge right now. However, that doesn’t mean you should hold off on your plans to buy a home.

If you're open to putting in some effort—or hiring someone to help—you might find that purchasing a house that needs some repairs can be a great way to become a homeowner. Here’s all the information you’ll need to determine if this is the right choice for you.

What is a Fixer-Upper?

A fixer-upper refers to a home that's in decent shape but needs some work. This could mean simple updates like taking down old wallpaper and installing new flooring, or it might involve bigger repairs such as replacing the roof or improving the plumbing.

Fixer-uppers might require some extra care, but here’s why they could be a smart choice right now:

1. They Tend to Be More Affordable - Since fixer-uppers require repairs, they usually come with a lower price tag compared to move-in-ready homes. In fact, a StorageCafe survey found that these homes cost about 29% less, making them a great option if you're struggling to find something within your budget.

2. Less Competition from Other Buyers - When you’re ready to make an offer, you won’t have to worry as much about bidding wars since most buyers are looking for move-in-ready homes.

3. Build Equity Quickly. With a fixer-upper, you get to make the space your own—from selecting new flooring to choosing the perfect kitchen cabinets. Plus, smart renovations can boost your home’s value faster, giving you a great return on your investment.

““If you’re a house hunter who’s not afraid of sweat equity, buying a fixer-upper could be your ticket to homeownership. Doing so could lead to big savings, even in some of the nation’s largest and most popular housing markets. Plus, adding the right features could help your investment.”
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— The Mortgage Reports

Things to Consider When Buying a Fixer-Upper

Fixer-uppers offer some thrilling possibilities, but there are a few important factors to consider beforehand.

• Do You Have a Plan? Before jumping into a fixer-upper, think about whether you have the time, skills, and budget for renovations. Be realistic about what you can DIY, what you'll need to hire out, and if this kind of project fits your lifestyle. Keep in mind—you’ll probably be living in a construction zone for a while!

• Prioritize the repairs and upgrades. Don’t feel overwhelmed by the idea of completing everything at once. Instead, spread out the renovations over time based on your budget and what’s most important to address first.

• Location is key. When you’re putting money into renovating a house, you want to know that it’s a smart investment. Check that the home is situated in a neighborhood where property values are on the rise and where locals enjoy amenities like parks and restaurants.

• Don’t Skip the Home Inspection. Bringing in a professional inspector before you buy is a must. Their report will give you a clear picture of what needs fixing, how much renovations might cost, and whether this project is really worth taking on.

• Plan for the Unexpected. Renovations almost never go exactly as planned, so it’s smart to have extra money set aside. Whether it’s delays, rising material costs, or surprise repairs, having a cushion in your budget will help you handle any bumps along the way.

Explore Your Financing Options. Some mortgages are specifically designed for fixer-uppers, but they often come with spending limits and timeline requirements. Chat with a trusted lender to make sure you understand the details and find the best option for your situation.

Bottom Line

Fixer-uppers aren’t for everyone, but if you’re willing to put in some work, they can be a great way to find an affordable home that fits your budget—even in today’s market.

With the right attitude and some thoughtful planning, you could transform a fixer-upper into the perfect home for you.

If you’ve found a fixer-upper that fits your budget and goals, would you be open to giving it a shot? If so, let’s chat and see what’s available!