With the onslaught of shows like Fixer Upper, Flip That House, and other similar shows, the appeal for fixer-uppers has been more prominent than ever, but are they really a good buy? Before you launch into a full-on HGTV project, here are some things to know about a fixer-upper.
Most amateur fixer-uppers spend a lot of time, energy, and money.
Once a buyer factors in all the costs involved with the renovation project and labor, buying a move-in ready home may be just as affordable. Statistics show that many fixer-upper homeowners have spent about the same or more than a move-in ready counterpart. A survey of over 1000 US homeowners found that those would buy a home that was move-in ready spend an average of $250,000. Those who bought a fixer-upper spend an average of about $50,000 last but then spent more on getting that home move-in ready or livable.
Of course, buying your own home and renovating it yourself offers more customizable options and you can tailor to your own needs, but the costs were about the same. The danger of a fixer-upper is running out of money before you have created the home you really want. More than 2/5 of homeowners looking to renovate a property ended up spending much more, to the tune of about $75,000 on renovations or 60% more than those who were able to stick to their allotted amount when purchasing a home.
You really have to determine the costs involved before finalizing the sale. Is it a roof replacement? Completely rewiring or re-plumbing the entire house or just some cosmetic upgrades? Doing your math and then doing your math again before finalizing the sale is really the key to understanding if you bought a home you really want to fix up.
There are a lot of homes throughout the Tri-Valley area perfect for the amateur fixer-upper without blowing your budget on major remodels or renovations. However, there are also hundreds of brand-new homes ready to be customized and finish to your tastes and style. Regardless, find exactly what you’re looking for throughout the San Ramon and Tri-Valley area or contact my office to get a list of fixer-upper properties in your market.