Buying a fixer-upper can be an exciting venture, but it’s easy to get swept away by the vision of what the property could become, overlooking the work that’s required to make that vision a reality. So, how can you purchase a fixer-upper without the sinking feeling of buyer’s remorse? Here are some essential steps to keep in mind when considering a home that needs a little—or a lot—of TLC.
- Assess Your Budget Carefully
Before falling in love with a property, it’s crucial to set a realistic budget that accounts for more than just the purchase price. Make sure to include the estimated cost of repairs, unexpected issues that may arise, and potential contractor fees. A good rule of thumb is to plan for at least 20-30% of the home’s value to go into renovations. It’s better to overestimate than be left scrambling for funds mid-project.
- Evaluate the Home’s Potential vs. Its Pitfalls
Every fixer-upper has its charm, but some issues are harder to fix than others. Structural problems, such as a foundation in need of repair or an unstable roof, can be costly and time-consuming to fix. Work with a knowledgeable inspector to uncover any hidden flaws. Think of it as the difference between cosmetic improvements (like new paint and flooring) and major fixes (like plumbing or electrical work). Prioritize what’s fixable and weigh the costs.
- Know Your Skills and Limitations
Are you a seasoned DIY enthusiast or someone who hires out all of the work? Be honest with yourself about your abilities and the time you can commit. Sometimes, the vision of a project can become overwhelming once the scope of work becomes clear. Don’t be afraid to lean on professionals for tasks beyond your expertise. It’s okay to ask for help and ensure the work is done properly, especially when it comes to things like wiring or plumbing.
- Research the Neighborhood
No matter how beautiful the home may be, the neighborhood plays a huge role in its long-term value. Are there amenities nearby? Is the area up-and-coming, or is it facing a decline? Make sure the home is in a location that offers the lifestyle you want and holds potential for future appreciation. A great house in a not-so-great area may not be the best investment.
- Plan for Resale
Even if you’re planning to live in the fixer-upper long-term, always keep resale in mind. You may be investing significant time and money into a property, but the reality is that life changes. You need to ensure the home will hold or increase its value once the renovation is complete. Avoid over-improving the home for the neighborhood or sinking too much money into custom features that may not appeal to a broad range of buyers.
Buying a fixer-upper can be a rewarding project if approached with the right mindset and preparation. By sticking to a clear budget, recognizing the property’s true potential, knowing your limits, and being aware of the home’s location and resale value, you’ll be able to make a smart purchase that you’ll be happy with for years to come.
The Paul Smith Team has expertly helped hundreds of clients successfully sell and/or buy their homes. Whether you need a Listing Specialist or Buyer’s Agent our team can help make the process smooth, predictable, and trusted every step of the way!
If you would like to receive more detailed information about buying and/or selling a home, give our team a call or send our team an email with your information with the Subject Line “Buying and/or Selling A Home” and we will be happy to help!
You can reach us at 843.606.0234 and/or home@thepaulsmithteam.com.