While affordability is definitely a challenge right now, that doesn't mean you have to give up on your homeownership dreams. If you're willing to put in a little elbow grease (or hire someone who can), buying a house that needs some work could be the perfect solution. Here’s what you need to know to decide if this is the right choice for you.

What Is a Fixer-Upper?

A fixer-upper is a home that’s livable but requires some renovation. These homes may need cosmetic updates, like removing old wallpaper and installing new flooring, or more substantial repairs, like replacing a roof or updating plumbing.

Though fixer-uppers need a bit of TLC, here’s why they might be the right move, especially in today's market:

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  Lower Price Point: Because of the repairs needed, fixer-uppers are typically priced 29% lower than move-in-ready homes, according to a StorageCafe survey. If you're struggling to find something within your budget, this could be a great option.

  
  


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  Less Competition: You’ll face less competition from other buyers, since most people are looking for homes that are move-in ready.

  
  


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  Build Equity Faster: Fixer-uppers let you customize the home to your taste, from picking out new flooring to updating the kitchen. Smart renovations can increase the home’s value quickly, giving you a solid return on your investment.

  
  

As The Mortgage Reports points out:

“If you’re willing to put in some sweat equity, buying a fixer-upper could be the key to homeownership. It can lead to big savings, even in highly competitive housing markets, while allowing you to add value to your investment.”

Things to Consider Before Buying a Fixer-Upper

A fixer-upper comes with lots of exciting possibilities, but there are a few things you need to think through first.

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  Do You Have a Plan? Do you have the time, skills, and budget to take on renovations? Be honest about what you can handle yourself, what will require professional help, and whether living in a construction zone is something you're ready for.

  
  


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  Prioritize the Repairs: You don’t have to do everything right away. Plan your renovations in stages, focusing on what’s most important and what you can afford first.

  
  


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  Location Matters: Make sure the home is in an area where property values are on the rise. Also, look for nearby amenities that will increase the home's appeal, like parks, restaurants, and good schools.

  
  


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  Get a Home Inspection: Always get a professional inspection before you buy. An inspector will help identify what needs to be fixed, how much it will cost, and whether it’s a project you’re willing to take on.

  
  


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  Budget for Surprises: Renovations rarely go exactly as planned, so be sure to set aside extra funds for unexpected issues, like extended repair timelines or rising material costs.

  
  


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  Talk to a Lender About Financing: There are special renovation mortgages available for homes that need work. These loans may come with specific requirements, so it’s a good idea to consult with a trusted lender to fully understand your financing options.

  
  

Bottom Line

Fixer-uppers aren't for everyone, but if you’re open to putting in some work, they can be a great way to tackle affordability challenges and find a home that fits your budget.

With careful planning and the right mindset, you can turn a fixer-upper into the home of your dreams.

Would you consider purchasing a fixer-upper if it fits your budget and goals? Let’s connect and explore your options!