Are you thinking about purchasing a fixer-upper? If so, you’re not alone. In today’s market, fixer-uppers are becoming increasingly popular, especially among first-time homebuyers. There are many benefits to buying a fixer-upper. For one, they tend to be much more affordable than move-in-ready homes. And with a little elbow grease, you can turn a fixer-upper into your dream home.
But before you start shopping for a fixer-upper, there are a few things you need to know. In this article, I’ll share 20 tips to help you save money (meaning spend less later!) when buying a fixer-upper.
1. Get Pre-approved for a Mortgage
The first step is to get pre-approved for a mortgage. This will give you a clear idea of how much money you have to work with. And it will also help you avoid overspending on your fixer-upper.
Cash buyers can often negotiate a better price on a fixer-upper. But if you’re not paying cash, you’ll need to get pre-approved for a mortgage. I’d always recommend looking for a house for under your pre-approval amount. You never want to be ‘house poor.’ This way you can budget extra income to pay for updates.
2. Get a Home Inspection
Before you make an offer on a fixer-upper, be sure to get a home inspection. This will help you identify any major problems that need to be addressed.
Issues aren’t always deal-breakers, but it’s important to know what you’re up against. Major issues are easy to spot, but with an inspection, they might pick up on things you would have otherwise missed.
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3. Have realistic expectations
It’s important to have realistic expectations when buying a fixer-upper. Remember, this is not going to be a brand new home. There will likely be some imperfections. But with a little TLC, you can turn your fixer-upper into a beautifully updated home.
Also, things take time, so don’t expect to move into your fixer-upper overnight. It may take months or even years to complete all the work.
4. Make a list of must-haves
Before you start shopping for a fixer-upper, make a list of must-haves. This will help you narrow down your search and avoid homes that are beyond repair. Some must-haves might include structural integrity, a sound roof, good bones, etc. Think about things that cannot be changed (busy road, yard size) or things that would be too far out of your budget to fix.
5. Have a budget and stick to it
It’s important to have a realistic budget when buying a fixer-upper. Otherwise, you could find yourself in over your head financially.
Be sure to factor in the cost of repairs, renovations, and appliances when creating your budget. Set aside some funds for unexpected repairs as well. Things never seem to work out perfectly!
6. Don’t forget about the landscaping
When considering a fixer-upper, don’t forget about the landscaping. This is often an overlooked expense, but it can be costly to update the landscaping of a home.
If you’re not familiar with landscaping, be sure to factor in the cost of hiring someone to do it for you. This includes your patio, a fire pit, or any outside structures you might want to add. For example, check out the best features of an outdoor hibachi grill for consideration.
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7. Consider the neighborhood
Another important factor to consider when buying a fixer-upper is the neighborhood. You’ll want to make sure you’re comfortable with the area before making a purchase. It’s always good to buy the worst home in the best neighborhood. It has the most potential!
Also, be sure to check out the schools in the area if you have children. This always plays nicely into your future plans if you want to resell.
8. Have a realistic renovation timeline
Be sure to have a realistic timeline for your renovations. Otherwise, you could find yourself living in a construction zone for months (or even years).
It’s important to factor in the time it will take to get permits, materials, etc. As the saying goes, time is money, so factor that into your budget as well.
If you are also renovating the outside, then you will need to ensure that you have set out what you will need for that ahead of time, as this can block access to your home, especially if you are re-doing the driveway or front yard. If you are hiring dumpster services to clear away debris, don’t forget to check asphalt disposal regulations (if you have asphalt), so you are not delaying the renovation process by doing the wrong thing.
9. Don’t do it alone
If you’re not an experienced handyman, it’s probably not a good idea to tackle a fixer-upper on your own. There’s nothing wrong with admitting that you need help.
Hiring a professional can save you time and money in the long run. A bonus if you consider that you might need to sell your home in the future, and it will appraise for more because it was done by a professional.
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10. Get creative with financing
There are a number of ways to finance your fixer-upper. In addition to traditional loans, there are government programs that can help with the cost of repairs and renovations.
You might also consider a home equity loan or a personal loan. Keep affordability in mind as well as the interest rate when considering your options.
11. Don’t over improve
When renovating your fixer-upper, be sure not to over improve. This is a common mistake that can lead to financial trouble down the road.
It’s important to stay within your budget and only make improvements that will add value to your home. The area also dictates the value of your home, so be sure to research recent sales in the neighborhood.
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12. Think long-term
When buying a fixer-upper, it’s important to think long-term. This is not a short-term investment. It’s likely that you’ll live in your home for several years (if not longer).
So, be sure to consider your future needs when making renovations. For example, if you plan on starting a family, you might want to add an extra bedroom. Also, property increases in value over time, so your home will most likely be worth more when you sell it.
13. Stick to your style
When renovating your fixer-upper, it’s important to stick to your personal style. This is your home, and you should feel comfortable in it. Don’t make changes just because they’re popular or trendy. Stick with what you love and what makes you happy.
Having said that, keep in mind that your design needs to be appealing to future buyers if you plan on selling. But, if you’re not planning on selling anytime soon, then go ahead and design your home the way you want it.
14. Use quality materials
When renovating your fixer-upper, be sure to use quality materials. This is not the time to cut corners or skimp on quality. Do your research and shop around for the best deals.
It’s important to use materials that will last. Otherwise, you’ll find yourself making repairs sooner than you’d like. Also, using quality materials will add value to your home if you plan on selling in the future. Remember, you’re investing in your home, and you want it to last for years to come.
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15. Don’t forget about curb appeal
While the inside of your home is important, don’t forget about the outside. Curb appeal is important when it comes time to sell your home.
So, be sure to add some curb appeal when renovating your fixer-upper. This can be as simple as planting some flowers or painting the front door.
16. Pay attention to the details
When renovating your fixer-upper, it’s important to pay attention to the details. This includes things like doorknobs, light fixtures, and cabinet hardware.
These small details can make a big difference in the overall look of your home. Functionality is just as important as aesthetics, so be sure to choose products that are both stylish and durable.
17. Don’t neglect the plumbing
Plumbing is one area that you don’t want to neglect when renovating a fixer-upper. This is an important part of the home, and it needs to be in good working condition.
Be sure to have a professional check the plumbing before you start any renovations. It’s more costly to fix plumbing problems after the fact. The damage that a leaking pipe causes can remain unseen for months, causing extensive (and expensive) damage. To avoid unexpected repair costs down the line, consider looking into a sewer line warranty as an added layer of protection for your investment.
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18. Update the electrical system
If your fixer-upper is an older home, it’s likely that the electrical system is outdated. This is another area that you’ll want to have checked by a professional. Preventing a fire hazard is more important than saving a few dollars. Not to mention with all of the electronics and charging we do nowadays, the last you need is to be constantly blowing fuses.
Updating the electrical system is also a good way to add value to your home. This is a major selling point for potential buyers.
19. Add insulation
One way to save money on your energy bills is to add insulation to your home. This is especially important in older homes that might not have adequate insulation. Additional benefits include improved noise reduction and increased comfort. Adding insulation can be a big project, but it’s worth it in the long run.
20. Get an appraisal done
If you’re planning on selling your fixer-upper, it’s a good idea to get an appraisal done. This will help you determine how much your home is worth and what improvements need to be made before putting it on the market.
An appraisal will also give you an idea of how much equity you have in your home. This is important information to have when negotiating with potential buyers.
Selling a fixer-upper can be a daunting task, but if you follow these tips, you’ll be sure to get top dollar for your home. With a little hard work and dedication, you can turn your fixer-upper into a beautiful and valuable asset.
In Closing
There you have it; 20 ways to really save when buying a fixer-upper. If you’re patient and do your research, you can find a great deal on a home that you can make your own. Don’t forget to consult with professionals along the way to ensure that your home is safe and up to code. With a little elbow grease, you can turn your fixer-upper into the home of your dreams!
