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There’s no doubt about it—affordability is a challenge in today’s housing market. But that doesn’t mean you have to put your dream of homeownership on hold. If you’re open to a little creativity and effort, purchasing a fixer-upper could be a great opportunity to make homeownership a reality.
Here’s what you need to know to decide if this is the right move for you.
What Is a Fixer-Upper?
A fixer-upper is a home that’s livable but requires some level of renovation. This could range from simple cosmetic updates, like fresh paint and new flooring, to more significant repairs, such as a roof replacement or plumbing upgrades.
While these homes require some TLC, they also come with key advantages that make them worth considering:
- Lower Purchase Price – Because of the repairs involved, fixer-uppers are often priced lower than move-in-ready homes. In fact, according to a survey from StorageCafe, they can be about 29% less expensive, making them an attractive option for buyers on a budget.
- Less Competition – Many buyers prefer move-in-ready homes, meaning there’s often less competition when making an offer on a fixer-upper.
- Potential for Equity Growth – With strategic renovations, you can increase your home’s value and build equity faster, all while customizing the space to fit your needs and style.
As The Mortgage Reports explains:
“If you’re a house hunter who’s not afraid of sweat equity, buying a fixer-upper could be your ticket to homeownership. Doing so could lead to big savings, even in some of the nation’s largest and most popular housing markets. Plus, adding the right features could help your investment.”
What To Consider Before Buying a Fixer-Upper
The opportunity to transform a home is exciting, but it’s important to be prepared. Here are some key factors to keep in mind:
- Have a Plan – Do you have the time, budget, and skills to handle renovations? Be honest about what you can DIY versus what you’ll need to hire out.
- Prioritize Repairs – Not everything needs to be done at once. Focus on essential upgrades first and plan additional improvements over time.
- Location Matters – Ensure the home is in a desirable area with strong property values and local amenities that will support your investment.
- Get a Home Inspection – A professional inspection will help you understand the scope of repairs needed and avoid unexpected surprises.
- Budget for the Unexpected – Renovations often come with surprises. Be sure to set aside extra funds for unexpected costs, whether it’s delays, material price increases, or hidden issues.
- Explore Financing Options – There are mortgage programs designed for homes that need renovation, but they come with specific requirements. Talking to a trusted lender can help you find the right financing solution for your situation.
Fixer-uppers aren’t for everyone, but if you’re open to taking on a project, they can be a smart way to enter the housing market and create a home that truly fits your vision.
At Evergreen Home Loans, we’re here to help you explore all your options and find the right financing solution for your needs. If you’re considering a fixer-upper, contact your local loan officer and discuss how they can support your homeownership journey.
SOURCE: Keeping Current Matters
