Should You Go For A Fixer Upper?
Posted by Admin Staff on Tuesday, April 13th, 2021 at 11:24am.
We all love the idea of a fixer upper. Breaking down the old, out-of-date and deteriorated to create a new, personalized and modern space for ourselves. We all love the idea, until we are putting the idea to work. Nothing else can break down a relationship and/or your finances faster than renovations on a fixer upper. However, given the right circumstances and know-how, fixer upper projects can make a lot of sense! Let's talk about this in detail, and see if a fixer upper project is a good choice for you:
They're Priced Low
..as they should be! Project homes are priced lower than other homes in accordance with all of the fixes required. Dan Bawden, of The National Association of Homebuilders (NAHB), says that people shopping for a fixer-upper can expect to spend 20% to 25% less than what they'd have to shell out for comparable homes that are move-in ready. Homes with serious issues (such as the foundation, pests, or flooding) should provide an even deeper discount. It's up to you to decide if you can renovate in a way to offset that 25% savings you initially receive, and not go over it. Be sure to have a contractor walk with you through the house to estimate what each repair will cost you. Give your renovation budget a cushion of 5% to cover any surprises - there's always something that pops up!
They Allow for Creative Freedom
While not as personalized as building your own home from scratch, a fixer upper is the more realistic dream when it comes to customizing a home. If making your dreams become a reality is a challenge you crave to take on, then this kind of project is a fit for you.
They Already Have A History
A home with "good bones" and a link to the past is irresistible, isn't it? New/Custom builds give you complete creative freedom, but they don't have that sense of history. Being able to recycle the old materials, or incorporate an old fixture into the new design in some way can be the biggest reward from your project.
You're DIY Savvy
The more serious problems in the house will require professionals to fix, but others can definitely be done by your own hand. If you know what you're doing when it comes to flooring, framing, walls, backsplashes, etc., you'll be laughing all the way to the bank when all is said and done. Not to mention, your beautiful work can be the start of your DIY portfolio if you decide to take on new projects, or partner up with someone on one of their projects! Being smart here will land you the most savings on your fixer upper, allowing for a better profit. This goes hand in hand with the next point..
You Want To Flip A House For Profit
If you can renovate and find reasonably priced professionals to renovate, all without sacrificing quality, there's an excellent chance you can turn a healthy profit on your fixer upper! There is something so satisfying, from a financial standpoint too, when you can take a neglected or otherwise undesirable home, invest some TLC into it, and finish with something beautiful. You have seen the potential, and have drawn it out for the world to see. You have more money in your pocket, and the new homeowners have a great home to enjoy for years to come....everybody is a winner, and that's satisfying to know, too!
It's An Adventure
You know there's going to be high peaks, and you know there's going to be low valleys. However, you know it's all about the journey. You want to pursue a new type of adventure. If this sounds like you, you might be a prime candidate for a fixer upper!