Do you have time, inspiration, and funding to spruce up a less-than-ideal home? Are you eager to customize your future property, or have you always strived to land the perfect DIY project you can live in?
In each of these cases, a home that’s a fixer-upper might be the best fit for you to purchase.
Buying a fixer-upper may seem counterintuitive to some, especially with new home builds increasing year-over-year and wildly fluctuating interest rates. But if you’re seriously on the fence about whether or not a fixer-upper is the best fit for you and your needs in a home, there are key factors you can consider before choosing to go this route.
How to Know if a Fixer-Upper is the Right Fit for You
If you’re ready and willing to put in the effort, time, and investment into fixing up a fixer-upper property, it might be the best fit for you.
To help you decide, here are 5 signs you should invest in a fixer-upper as your home.
#1. You Have a Different Approach to Your Buying Power
Depending on your buying power, you may not have enough cash in hand or in your approved loan to live in a particular area. But if you’re set on a specific neighborhood — think: reasons related to your lifestyle, the neighborhood's growth potential, and the rising values of nearby properties — you can use the funding you do have to purchase a fixer-upper.
Fixer-uppers are typically lower in price, which makes them more accessible as an entry point into the neighborhood of your dreams. And if you’re more interested and intrigued by the potential of a fixer-upper home, you might choose to allocate some of your funds to your DIY or construction budget.
#2. You’re Not Interested in a Bidding War
A major pro of fixer-uppers? Less competition. Look, it’s only natural other buyers will want a home that’s at least mostly move-in ready.
But if you’re in a competitive market, equipped to make the property your own, and want to move quickly while doing your best to avoid engaging in an all-out bidding war, taking the leap on a fixer-upper might be the best fit.
And with the current housing market supply sitting low with unclear projections of when housing inventory will increase again, choosing to invest in a property and work with its conditions can benefit you in the long-run, thanks to appreciation and equity.
#3. You’re Crafty and Inspired
If you have a specific vision, particular set of DIY skills, access to a killer set of contractors, or simply fancy yourself an expert comparable to HGTV’s top talent, a fixer-upper might be the right route for you.
Fixer-uppers take work, but some people enjoy the satisfaction of rolling up their sleeves and making a home their very own. Whether it’s completely customizing every element of the home, or investing in key structural upgrades and doing the rest yourself, a fixer-upper is filled to the brim with opportunity to make it your very own.
If you’re inclined in this way, you may find this home type to be the best fit for you.
#4. You Know the Location is Solid
If the home’s curb appeal is lacking, but you know it’s in a great neighborhood or area, a fixer-upper could be the way to go when purchasing a home.
If the community where the home is located fits your lifestyle, and you’re confident its location and easy access to neighborhood features would be appealing to potential buyers down the line, investing in a fixer-upper home could be the way to go.
And, if the fixer-upper is in a neighborhood that’s up-and-coming, near historical areas or major attractions or landmarks, you can help ensure the home’s value can increase over time.
#5. You See the Fixer-Upper’s Long-Term Potential
There’s a reason folks describe a home as having good bones.
If you take a look at the fixer-upper and feel confident you can make key upgrades, renovate and refurbish, and have confidence in its potential as a fixed-up structure, you could be making the best choice. Better yet, after you complete upgrades, the home’s appreciation can only benefit.
By making renovations, customizations, and adding other improvements to the property, you can build confidence in its potential to increase in its value.
Fixer-upper or not, a professional real estate agent can help you find the perfect home that’s the right fit for you. Get in touch with top agents in your local area today on RealEstateAgents.com!