Thinking of Buying a Fixer?

Top 5 Things to Consider When Buying a Fixer-Upper (Before You Fall in Love with the Potential)

Buying a fixer-upper can be a dream deal or a money pit—and the difference usually comes down to doing your homework upfront. For many buyers, the appeal is undeniable: below-market pricing, the freedom to design your dream home, and the opportunity to build equity quickly. But before you break out the paint samples and Pinterest boards, here are the top 5 things you need to consider before buying a fixer-upper.

1. Your Renovation Budget – Not Just the Purchase Price

The lower price tag of a fixer-upper can be tempting, but don’t forget to factor in renovation costs. According to HomeAdvisor, the average cost to renovate a home in 2024 is $15–$60 per square foot, depending on the scope and materials. That means a 2,000 sq ft fixer-upper could cost anywhere from $30,000 to $120,000 to remodel.

Ask yourself:
✔ Do I have a renovation budget on top of my down payment and closing costs?
✔ Am I prepared for potential surprise expenses like electrical, roofing, or foundation issues?

💡 Pro Tip: Always build in a 10–20% buffer for unexpected costs.

2. The Home’s Structural Integrity

Cosmetic upgrades are easy fixes. But major structural problems? That’s where things get costly. A sagging foundation, outdated wiring, or plumbing issues can quickly eat up your budget and timeline.

Before making an offer, invest in:
🔎 A full home inspection
⚙️ A separate foundation or structural engineer report if needed
⚡ An evaluation of electrical, HVAC, and plumbing systems

💬 According to the National Association of Realtors (NAR), structural repairs can account for up to 30–50% of a total rehab budget when issues are found.

3. Your Timeline and Lifestyle

Renovations take time—and sometimes, more time than you expect. Are you okay living in a construction zone? Do you have somewhere else to stay during heavy renovations?

⏱️ On average, a whole-home remodel takes 4–8 months, and that doesn’t include permit delays or material shortages.

If you're on a strict timeline—like relocating for a job, having a baby, or starting school—a move-in ready home might be a better fit.

4. Local Comparables (aka: Don't Over-Renovate)

It’s easy to fall in love with design trends and high-end finishes, but remember—your home's value will ultimately be determined by the neighborhood. Check local comps (comparable sales) to avoid over-improving for the area.

📊 Example: If homes in the area top out at $400K, and your fixer-upper will cost $300K to buy + $150K to renovate, you may struggle to recoup your investment when it’s time to sell.

💡 Work with a real estate agent who understands local values and can run a CMA (Comparative Market Analysis) before you commit.

5. Renovation Loans or Financing Options

If your fixer-upper dreams are bigger than your savings account, don’t worry—there are financing tools specifically for renovation buyers.

💰 Popular Options Include:

• FHA 203(k) Loans – One mortgage that covers purchase + renovation
• Fannie Mae HomeStyle Loans – Allows up to 75% of the home's future appraised value for renovations
• HELOC (Home Equity Line of Credit) – For buyers with existing home equity looking to fund repairs

💬 Pro Tip: These loans often require contractor bids and extra paperwork, so make sure you have a trusted lender who’s experienced in renovation financing.

Final Thoughts

Buying a fixer-upper can be a smart investment if you're realistic, well-prepared, and working with the right team. The key is balancing potential with practicality. If you're open to getting your hands dirty and making decisions with both your heart and your calculator, you could end up with your dream home—and some serious equity.

📲 Ready to explore fixer-upper opportunities in your area? I’d love to help you find the perfect diamond in the rough and guide you every step of the way! realtor, best agent, real estate, Southlake, Keller, Haslet, home buyer, home seller, home value, Trophy Club, Fort Worth, new home, house, home selling, seller tips, 4wheeltorhomes, 4wheeltor, Crystal Zschirnt, Westlake, Roanoke, Justin, Northlake, Flower Mound, Argyle, Texas

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