Affordability Is Tough—But a Fixer-Upper Could Be the Answer

There’s no denying that buying a home is challenging in today’s market. But that doesn’t mean you have to put your plans on hold. If you’re open to renovating a home, a fixer-upper might be the key to homeownership.

Before diving in, here’s what you need to know to decide if this is the right move for you.

What Is a Fixer-Upper?

A fixer-upper is a home that’s livable but needs renovations. These updates can range from cosmetic changes like wallpaper removal and new flooring to major repairs like roof replacement or plumbing updates.

While these homes need some TLC, they can be a smart investment—especially now.

Why Consider a Fixer-Upper?

  • Lower Price Point – Fixer-uppers are typically more affordable than move-in-ready homes. According to a StorageCafe survey, they are about 29% cheaper on average.
  • Less Competition – Many buyers focus on move-in-ready homes, so fixer-uppers often have fewer bidding wars.
  • Build Equity Faster – With smart renovations, you can increase home value quickly and boost your investment.

As The Mortgage Reports explains:

“If you’re a house hunter who’s not afraid of sweat equity, buying a fixer-upper could be your ticket to homeownership. Doing so could lead to big savings, even in some of the nation’s largest and most popular housing markets.”

Key Considerations Before Buying a Fixer-Upper

1. Have a Game Plan

Do you have the time, skills, or budget to take on renovations? Be honest about:

  • What you can DIY vs. what you’ll need to hire professionals for.
  • Whether you’re comfortable living in a construction zone for a while.

2. Prioritize Repairs and Upgrades

You don’t have to do everything at once. Space out renovations based on:

  • Budget constraints.
  • Essential fixes first (roofing, plumbing, electrical).
  • Aesthetic updates later.

3. Choose the Right Location

Your fixer-upper investment will be more worthwhile if the home is in an area with:

  • Rising home values.
  • Great amenities like parks, restaurants, and shopping.
  • Good school districts (which can impact resale value).

4. Always Get a Home Inspection

A home inspection is non-negotiable. It will reveal:

  • Hidden issues (foundation problems, outdated wiring, mold, etc.).
  • Accurate renovation costs so you’re not caught off guard.

5. Budget for Surprises

Renovations rarely go 100% as planned. Prepare for:

  • Unexpected costs (rising material prices, labor delays).
  • Additional repairs that may pop up during construction.

6. Explore Renovation Financing Options

Certain renovation loans, like FHA 203(k) loans or Fannie Mae’s HomeStyle loan, can help finance both the home purchase and repairs. However, they come with:

  • Spending limits.
  • Specific renovation guidelines.
  • Timeline requirements.

Bottom Line

Fixer-uppers aren’t for everyone, but if you’re open to a little work, they can be a great way to overcome affordability challenges and find a home within your budget.

With the right plan, you can turn a less-than-perfect house into your dream home.

Ready to Explore Fixer-Upper Options?

If you’re thinking about buying a fixer-upper, let’s connect and find the best opportunities in your area.