Are you in the market for a home and currently going through the steps to buy a house? During this time, have you considered purchasing a fixer upper?
A fixer upper is a home that will need some major repairs. It’s most often a place that you can still move into, though you may have to make certain accommodations for the way you live as you work to improve the house.
Fixer uppers are often overlooked thanks to people seeing their downfalls as opposed to their bright spots.
Here are some reasons why the next house you buy should fall into the fixer upper category.
They’ve got a lower purchase price.
Thanks to the work that needs done, a fixer upper is typically listed on the market for a much lower purchase and therefore a lower down payment requirement and monthly payment, says WashingtonPost.
There’s less competition.
Because people tend to gloss over a fixer upper, there is less competition in the field when it comes to buying.
You will rarely find yourself in a bidding war when going for a fixer upper.
Your home design can be flexible.
Because you are doing major work on the home you get to decide what it’s going to look like in the end.
Working on a fixer upper allows room for creativity and specificity. You can build your dream kitchen or fix up the master bedroom to your liking.
You will know the quality of the work.
Because you’re the one either doing the work or contracting it, you know the quality craftsmanship that’s going into it.
You can shop around for the most reputable contractors and materials and oversee the project from start to finish to ensure it’s being done properly.
It’s a rewarding process.
If you’re the type of person who prides themselves on hard work and likes working with their hands, a fixer upper may be right for you.
A lot of blood, sweat, and tears go into fixer uppers and they can become a point of pride for the homeowner, says NerdWallet.
If you are educated enough that you can do most or all of the work on your own, the process will feel even better when it’s finished.
Things to Think About
These are the things you need to do consider when looking for a fixer upper for purchase:
- Get an inspection: This is a non-negotiable when it comes to buying a fixer upper as it will dictate just how much work you’ll need to put into the home.
- Estimate your costs: After you know what you’re in for do a rough estimate of renovation costs to make sure it’s worth the investment.
- Look for a special loan: Some loans are designed to help fixer upper purchases, like the Federal Housing Administration rehabilitation loan or Fannie Mae HomeStyle Renovation Mortgage.
- Make sure you have the time: Taking on a fixer upper is a big, and often lengthy, task. Do you have enough time to dedicate to it? Even if you aren’t doing the repairs yourself, you’ll want to make sure you can be present for contractors and important parts of a project.