Ask any real estate expert and they’ll tell you that buying the worst house in the best neighborhood is almost always a sound real estate strategy. It’s a great way to get a lot of bang for your buck when purchasing a property.
But what they won’t always mention is that you’re likely going to have to be prepared to do a lot of work on this type of home before moving into it. These kinds of houses are usually fixer uppers that aren’t in the best shape.
There are many pros and cons of buying a fixer upper. You need to know about all of them before buying a fixer upper house.
Buying fixer uppers isn’t for the faint of heart. After buying a house that needs work, you’re obviously going to need to devote all your time and energy to bringing it back to life. But it could all be worth it in the end.
Here are the pros and cons of buying fixer uppers.
Pro: It’ll Be Cheap
When a house is a fixer upper, it’ll typically cost a whole lot less than similar homes in the same neighborhood. Those who own fixer uppers will often list them for very low prices to try and entice people to make offers for them, which could really work to your benefit.
If you love a certain neighborhood but know that the homes are very expensive in it, the only option that you might have is buying a fixer upper house in it and fixing it up. It’ll allow you to move into the neighborhood that you want without spending a small fortune in the process.
Con: It’ll Require Expensive Renovations
When you buy a fixer upper house, you’ll get it for cheap. But everything else associated with it is going to be expensive.
It’s not out of the ordinary for people to buy fixer uppers and spend tens of thousands, if not hundreds of thousands, of dollars renovating them from top to bottom. This might not be something that you can fit into your budget.
Prior to even considering the pros and cons of buying a fixer upper, you should make sure that you’re going to be able to afford to do it. If you don’t have access to cash to pay for renovations, it might not even be an option for you.
Pro: It’ll Give You a Chance to Make It Your Own
You will have to pay a lot of money to make the necessary renovations to a fixer upper house. But—and this is a big but!—the advantage of doing this is that you’ll get to make it your own.
Do you want to incorporate a certain style throughout a house? A fixer upper will give you every opportunity to do this.
It’ll also give you an opportunity to make everything from the kitchen and bathrooms to the living room and basement the way you want. You’ll get the chance to customize every aspect of a fixer upper house, which is something you’re not going to be able to do with other homes.
Con: It’ll Force You to Spend Months Revamping It
Most people get really excited when it’s time to move into move in ready homes. They can’t wait to get all of their stuff into it so that they can settle down and make the home their own.
This isn’t something that you’re going to be able to do when you move into a fixer upper. You’ll need to spend at least a few weeks, if not a few months, renovating your home until it’s finished.
If you don’t have time to sit around and wait for home renovations to be done, a fixer upper is simply not going to be for you. You’re going to grow frustrated sitting around and waiting for everything to be complete.
Pro: It’ll Help You Make a Profit Down the Line
Maybe you’re thinking about buying a fixer upper, renovating it, and trying to flip it right away. Or maybe you’re not thinking about selling a fixer upper anytime soon after buying it.
Either way, there is a very good chance that you’ll make a big profit on a fixer upper property when you go to sell it one day. All of the money that you put into fixing the house up and then some will come back in your direction at some point as long as you play your cards right.
It wouldn’t be out of the ordinary for you to make $100,000 or more on a fixer upper house in just a year or two. It’s a big part of the reason why so many people spend a lot of time and money flipping houses today.
Con: It’ll Be a Very Stressful Experience
Moving into a new home is stressful enough without all the renovations that come with buying a fixer upper. So you can only imagine the stress you’re going to face when you purchase a property and then spend a bunch of time fixing it up before moving into it.
Stress is something that’s definitely going to be a part of the equation when you buy a fixer upper. You had better be prepared to deal with it accordingly if you’re going to move in this direction.
Understand the Pros and Cons of Buying a Fixer Upper Before Doing It
Far too often, people jump right into purchasing fixer uppers without first considering the many pros and cons of buying a fixer upper. You should do your best not to make this mistake.
There are some people who are able to overlook the cons of buying a fixer upper house by focusing on the pros instead. But not everyone is cut out to do this. There are people who just can’t help but get overwhelmed by all the work that goes into fixer upper homes.
Which side of the fence do you fall on? That’s a question you’ll need to answer for yourself before pulling the trigger and buying a fixer upper house.
Browse through our blog for more informative articles on buying fixer uppers.