Is Buying a Fixer-Upper Worth it? Ask an Agent: Luke Thompson

Oct 31

Is buying a fixer-upper worth it? Luke Thompson explains that it can be, but it is dependent on how much work needs to be done, and you’ll need to be sure you’re ready. Luke broke down some of the pros and cons (he calls them “things to consider”) of preparing to fix a house that needs some extra TLC.

Things to consider:

Managing multiple projects and contractors can be incredibly stressful and taxing, especially over a long period of time. Especially if you have children, a full-time job, or lots of hobbies and volunteer work! You’ll need to be ready to juggle multiple projects at once and be committed to staying on top of them.
The cost of materials is always changing - and quickly! Lumber may be $70 a piece one day, and up to $95 the next. Because of this, budgeting can be tricky. You’ll have to account for materials changing price.
You should ensure that you speak with your mortgage advisor about your intentions for the property before purchasing. This way, they can take those added costs into account when helping you budget accordingly and determine what homes are within your price range.

Pros:

You may find a house that is well under market value because the owner simply doesn’t want to do the repairs necessary to bring it up to a better price. This is a great opportunity if you have the time and budget to fix it up into your dream home! It also gives you the opportunity to customize a home more than someone who buys a new build or well-finished home and spends that extra money on the house itself rather than the custom repairs and updates you will be doing.
Luke explains you can make a great amount of money if you’re careful with your budget for the repairs. The repairs may make you more money in the value of your home than they cost to actually do!
If the house is below market value, you’re getting more house/property for your money. You can take your time with the updates that are needed, starting with the most important repairs and moving backwards.

Luke says that the bottom line is between you, a professional contractor, and your realtor. Figure out the costs and hurdles you may encounter and see if this home is for you!