Watson Real Estate
Buying a Home - Why a Fixer Upper is a Great Option
Given today's market prices, opting for a fixer-upper can be a cost-effective choice, potentially leading to increased profits when you decide to sell.
30 May 2024
Buying a Fixer Upper
Buying a home? Why a fixer upper is a great option. Buying a home as an exciting time. It’s a time that promises change, opportunity and the ability to make something as important as that home, your very own. So, when you’re looking for a new home consider buying a fixer upper & here’s why. A fixer upper can save you a ton of money. Most home buyers want to walk right into a home that’s ready and waiting for them, They don’t want to have to do any extra work to make the home a nice, comfortable place to live. Many aren’t even willing to change the paint colours, they want it move-in ready I’m probably in that category myself.
Why Consider a Fixer Upper?
However, this does make fixer uppers as good value because in order to compete with other homes in the market, they significantly have to lower the asking price. Often you can buy a fixer upper in a good neighbourhood and save 10, 20, or even 30% on the home relative to other homes in the neighbourhood. As a buyer, this means more cash stays in your pocket and in your bank account. A fixer upper also gives you the unique opportunity to make money on the home. You’ve probably heard the term ‘Flipping’. This is a term for people who buy fixer-upper homes, fix them up and then sell them for a profit. If you buy a home, that’s in a good neighbourhood and fix it up, you can often make thousands or sometimes tens of thousands of dollars in profit.
Make it Your Own
Now, even if you’re not a professional home flipper, you can make money on your home. Buy it at a low cost, fix it up and you instantly increase the home’s value. When you are ready to sell, you’ll likely recoup all your investment with a bit of extra profit on top. Buying a fixer upper also means that you can make the home uniquely yours, and moving into a move-in-ready home makes you likely going to have neutral walls, neutral carpet, neutral tiles. Sure, it goes with everything, but it doesn’t have much personality. Being able to update the house to your personality will make it a much more enjoyable place to live.
What to Avoid
Fixing up a home is rewarding. We’ve talked about money and comfort, but I’ve yet to meet mentioned that fixing up a home can be emotionally satisfying. There’s just something really rewarding about improving your home, turn it from drab or downright ugly to a place you can be proud of. Now, when choosing a fixer upper, experts advise steering clear of homes that need structural work. Generally, you want to find a home that needs cosmetic improvements and not a complete overhaul from the foundation up. Structural improvements and major innovations can become expensive. And you may find you’re in over your head. Search for a new home carefully, evaluate the pros and the cons, and don’t neglect the homes that need a bit of repair. Often they can get great bang for the buck and tremendous satisfaction.
