You may have been warned about buying a house that “needs work.” Some naysayers complain that fixer-uppers are too costly and too time-consuming. But, there are actually many upsides to purchasing a fixer-upper. Whether you’re considering getting into the flipping business, want to rehab a rental property, or simply want a fixer-upper that you can make your own, purchasing a house that requires renovations has significant benefits.
Pros of buying a fixer-upper
- Low pricing.
Houses that need work generally come with a lower price tag than move-in ready dwellings. Maybe you can afford to buy a fixer-upper in your dream neighborhood, when otherwise it would be impossible. Or perhaps you can get a large house that you would never have otherwise been able to afford. Even with the costs of renovations, you still might end up paying less for your fixer upper than one that’s turn-key.
- Less competition.
The Dallas-Forth Worth housing market has been heating up in the past few years. A hot market can be high pricing and potential bidding wars. The competition for fixer-uppers is usually much less. Not only can you score a great bargain, you won’t have to deal with as many interested parties.
Tearing up kitchens and bathrooms in your fixer-upper means being able to customize the new rooms to your liking. You’ll be able to pick the paint, flooring, and fixtures, instead of just settling for what the previous owners chose. And if you’re buying the house to rent out or to flip, you can customize the house to what a new buyer or renter might like.
- Quick route to equity and appreciation.
Say you purchase a home for $100,000 and put $50,000 worth of work into it. Now, the value is $180,000. You’ve earned $30,000 worth of appreciation (and equity) much quicker than if you bought a turn-key house.
- Great for those in the construction industry.
Do you already work in the industry, either as a contractor, electrician, roofer, or another construction-related profession? You may be able to do some (or most) of the work yourself or get special pricing from your friends in the business. Consider what connections or skills you already have before launching into a fixer-upper. It may work to your advantage.
If you’re new to home buying or flipping, go with a house that needs a few thousand dollars’ worth of paint rather than a hundred thousand dollars’ worth of renovation. It can be a ton of effort and come with unexpected expenses. Inexperienced buyers may struggle with the stress and surprises.
If you are considering purchasing a fixer-upper in the greater Dallas-Fort Worth region, call Linda Peterson. Linda has the experience, knowledge, and skills to make your home buying dreams come true. Call her today at (817) 829-3000 or fill out a contact form.