TLC Real Estate



Posted by TLC Real Estate on 4/29/2022

If you have a tight budget and love DIY, buying a fixer-upper might seem like a straightforward decision. Fixer-uppers are homes that need repairs and updates rather than being ďmove-in ready,Ē and can be affordable options in any kind of market. However, fixer-uppers require significant money, effort and careful planning. If youíre trying to determine whether a fixer-upper is right for you, here are the biggest things to think about:

Time Investment

Even the smallest home renovation can take weeks or months of time to complete. If youíre planning on renovating an entire house, expect to dedicate months of hard work to the task. Even if you hire professionals to do the hard work, youíll be investing a lot of your time in the project. Hardcore DIY enthusiasts might be tempted to tackle all the work themselves but will need all the right skills, equipment, safety measures and more. Consider the time youíre willing to commit to before you get a fixer-upper.

Total Budget (Including Renovations & Repairs)

When building a budget for a fixer-upper, many small projects combine into one. This can make it really difficult to get an accurate idea of how much money youíll need or want to spend. Itís also tricky to factor the cost of the home purchase into the equation, as well. If you stretch your budget too thin on buying the property, youíll have less available for the repairs and upgrades.

Luckily, mortgage lenders and real estate professionals can help advise you on the best choice of funding for your situation. There are special types of loans meant for major home renovations that can help with your fixer-upper project and traditional mortgages.

Temporary Living Situation

Because fixer-uppers can take a long time to complete, itís important to have a stable living situation in the meantime. If youíre selling your current home and planning to move into the fixer-upper when itís done, this can make the timing awkward and also allow expenses to pile up. You and your fellow household members will need somewhere safe to live until the property is move-in ready. If youíve sold your current home already, that means paying for temporary lodging.

A fixer-upper might be your dream scenario, but donít forget to assess the reality of the situation. Before taking the plunge, consider these three key things to help you make the best decision.




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