There are both advantages and disadvantages to buying a fixer-upper. While some individuals are attracted to the idea of investing time and effort into creating their dream home, others prefer the convenience of purchasing a renovated property that needs minimal work. Here are some of the top reasons to purchase a home requiring repairs:
1. Opportunity for Profit
Fixer-uppers usually sell for less than renovated homes. Although it is a significant investment, purchasing and renovating a fixer-upper may allow you to sell the home for a higher price and thus making money, in the long term.
Buying a home in a desirable neighborhood tends to be more expensive; however, by choosing a property that needs renovations, you can potentially secure a more affordable home in the neighborhood of your dreams. This flexibility allows you to prioritize location while working within a limited budget.
3. Save Money
This is one of the most obvious benefits of buying a fixer-upper. Between lowered competition for the house and a lower price overall, this is an excellent way to purchase a house when you have limited money. Furthermore, if you possess the necessary skills, you can save additional costs by performing some of the renovations and improvements yourself.
4. Design Choices
By buying a house that isn’t finished, you can renovate it precisely as you like. When you buy a more expensive house that is renovated, affording to redo aesthetic decisions may be outside the budget. Purchasing a house needing decorative help is even better if you enjoy interior design.
The following are reasons to purchase a turnkey home instead:
1. Time and Money
It is no secret that a fixer-upper requires large amounts of time and money for renovations to become a reality. For those who have time, this may be an enjoyable process. But for most, the time and cost required for a fixer-upper make it not worthwhile.
Older homes, which are common fixer-upper candidates, often come with hidden problems that may not be apparent during the initial assessment. Once renovations begin, you may uncover issues such as plumbing or electrical problems, structural weaknesses, or hidden damages. To help mitigate these surprises, we recommend budgeting extra for these unforeseen costs.
3. Living Arrangements
If you have already sold your last house, figuring out where to live while renovating may be difficult. By contrast, a renovated home allows you to move in without worrying about the in-between time.
4. Skills Required
Some people love renovations and handiwork, but that does not apply to everyone. If this is something you enjoy, go at it! But for those who are not naturally interested in this, buying a home with the renovations done may be more up your alley.
Ultimately, it all comes down to finding a house that works for you- your lifestyle, priorities, skills, and choices. Contact us to learn more about our expert realtors at LorenzTeam, and let us help you find your ideal home!