Today's question is, what are the advantages and disadvantages of buying a fixer upper?
Hi, I'm Dawn D'Amico, your favorite realtor in Pennsylvania and New Jersey. Today, I'm going to talk to you about the advantages and disadvantages of buying a fixer upper.
A fixer upper is a home that needs some repairs, renovations, or maybe some cosmetic updating. This could be anything from a fresh coat of paint to a new roof.
Fixer uppers can be a great way to get into your dream home and neighborhood at a lower price. However, it's important to weigh the pros and cons before making a decision to buy one of these diamonds in the rough.
Before we dig into this, let me ask you, have you ever bought a fixer? If so, do you have regrets or are you happy with the outcome after you did the work? Comment below.
All right, let's start with the advantages of buying a fixer upper. The first advantage is obviously a lower purchase price. Fixer uppers are typically priced significantly lower than homes with recent updates that are bright and shiny and new looking. This can save you a significant amount of money on the purchase price.
The second advantage is the equity. When you renovate a fixer upper, you are adding value to your home. This means you will build equity much more quickly than you would if you bought a home at the top of the market price for your neighborhood.
We call this a wedge deal.
For instance, let's say you're looking in a neighborhood where the homes are selling for about $600,000 if the house is in tip top shape. Then, let's say there is a house in the same neighborhood in need of some love and attention that is only maybe $400,000 maybe $450,000. That difference in price is your equity wedge.
The third advantage would be customization. When you renovate a fixer upper, you can customize it to your exact taste. This means that you will have a home that is truly unique to you.
If you are thinking about buying a fixer, reach out to me at the number below and we can see if working together makes sense.
Alright, now, let's talk about the disadvantages of a fixer upper. It is not all rainbows and unicorns, folks. Fixer uppers can be a challenge. Unexpected costs can pile up, and the time and effort needed for renovations can be overwhelming. The first disadvantage is unknown costs. It is difficult to estimate the total cost of renovating a fixer upper until you really start the work. This means you can end up spending more money than you originally planned.
The second disadvantage is your time commitment. Renovating a fixer upper can be very time consuming and a long process. It might feel like you are living in a constant construction zone. If you are not prepared to spend a lot of time and effort on your renovation, then a fixer upper might not be the right choice for you.
The third disadvantage is unexpected surprises. When you are renovating a fixer upper, you are bound to encounter some unexpected surprises. This could be anything from finding termites, to discovering that the electrical wiring is very outdated.
I recently helped a couple buying a fixer upper. This couple, they always dreamed about owning a Victorian home, but they could not afford to buy one that was in perfect condition. They decided to buy a fixer upper and renovated the home themselves as they lived in it. They worked hard on their renovation and they were able to complete it in just six months. They ended up spending about $30,000 on the renovation, which was much less than they would have spent on buying a Victorian home renovated by the previous owner. And, they get to brag about having done some of the work themselves when friends and family come for a visit. They are now living in their dream home and absolutely loving it.
If you are thinking about buying a fixer upper, then I encourage you to contact me today. I can help you find the right fixer for your comfort level and budget.
And, there you have it folks, the answer to the question, what are the advantages and disadvantages of buying a fixer upper? Okay friends, don't forget to follow my blog if you are finding these insights valuable. And of course, share your thoughts and questions in the comments below.
So, are you thinking about buying, selling, investing?
Reach out to me today and let's see if working together makes sense. I'm Dawn D'Amico, your trusted realtor in Pennsylvania and New Jersey and I'll talk to you soon.
📞 Dawn's Mobile: 215-962-9307, eXp Realty: 888-397-7352
📧 Email: dawn.damico@exprealty.com
🔗 More Info: https://bit.ly/3X9Ju4x
