Most people have heard the term ‘fixer upper’, and in all likelihood have encountered examples on tv or social media. But if it's something you’re considering for your property journey, or a possibility for the future, then you need to know what the reality of taking a property from undesirable to a dream home will look like. To help you, here are some of the pros and cons of taking on a fixer upper property, and why and when it would be a worthwhile choice for you to make. 

Lowers The Barrier to Purchase

It’s never quite as cut and dry as simply looking at the original list prices for fixer-upper properties and concluding that you’ll be able to save money—as you will have to factor in future costs on both renovations and maintenance.

Even with those in mind, because of the lower list prices and smaller down payments required, you will often have less of a total spend, and will be paying less money upfront. The latter can be especially useful if you aren’t able to raise the required funds for the property you’re looking for, but know you’ll have the cash flow to spend regularly on improvements over the coming months and even years.

There’s also the added bonus of these homes coming with less competition from other buyers, as they are often less desired, this both makes it more likely for you to have a bid accepted, and helps keep the price down as it won’t be bid up by multiple buyers. 

The Hidden Costs

It’s important to note, especially if the financial aspects are playing a significant role in your decision making, that there is no hard and set rule for whether or not a fixer upper property will work out cheaper in the long run, and if you’re planning on selling the property down the road, there’s less guarantees and security when it comes to recouping the money you’ve put in.

This can be compounded by the fact that projecting future costs is very much a matter of guesswork and prediction, and you will need to anticipate the possibility that you’ll end up spending beyond your initial budget.

It’s not just money where these unanticipated developments will matter, time will also be a factor. There not just the allocated significant time you will likely have to spend developing the property, there is always a chance of things being delayed, sometimes for a long time, making it important to consider your needs and set boundaries when it comes to having a property you can move into and live in immediately. Such as if you’re selling your current property to raise funds, or if you have a family and are looking to move into a larger property to accommodate that.

You Can Build Your Dream Home

It would be nice to believe that the perfect home is out there waiting for everybody—and for some people it may very well be—but for many, there will always be a degree of compromise, whether that’s over location, layout, decoration, or any one of a number of factors.

As these properties require more work, and are further from their finished states, they will offer something of a blank slate for prospective buyers. Additionally, because more of your budget is being put into the renovation process, you’ll find yourself far less limited by budget constraints when it comes to putting in the features and changes you truly desire.

This greater degree of control and decision making also means you’re able to oversee the quality of the renovations and ultimately, the long term quality and value of your home, as you’ll have been there every step of the way.

It’s also important to consider that for many people, a dream home is not just about the property itself, but also about the location, and getting a property in your dream neighbourhood can often be one of the most difficult obstacles to overcome. Prices for more complete homes in desirable neighbourhoods may often be too much for a lot of buyers, and purchasing a fixer upper in the ideal location can be a great solution that will allow you to live in the place you want to be.

A More Difficult Path

With those advantages comes a sobering reality check, for many the prospect of all that work and planning will simply be untenable. While it is easy to imagine you can simply decide what you want, set things in motion and wait, you’ll need to be able to spend the time overseeing and managing the renovations and making key decisions while also planning ahead.

In short, it’s a lot of effort, and with that effort can invariably come stress. Which isn’t to say it isn’t worth it, simply that you need to be realistic about your goals and resources when embarking on the challenge of a fixer upper property.

Whether you’re looking for a fixer upper to transform, or the perfect ready made home right for you, you’ll need to find the right realtor in order to get the best deal on the right place. And when it comes to finding the best, you need the kind of experience, know how, and care for our clients that we at Madsen Langlois can provide. To find out more and arrange a meeting, get in touch with us today.