What Should I Know About Buying a Fixer-Upper?
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
1. Budget Realistically for Repairs and Renovations
It’s easy to underestimate how quickly renovation costs can add up. Even cosmetic changes like paint and flooring can run thousands—and bigger repairs like plumbing, roofing, or foundation work can blow the budget fast.
Before making an offer, get contractor quotes and set aside a buffer for unexpected issues. The “cheap house” isn’t so cheap if you’re constantly pouring money into it.
Finance both the purchase and renovations in one loan using the FHA 203(k) Renovation Purchase Loan calculator or Fannie Mae HomeStyle Purchase calculator to understand your complete project budget.
2. Be Honest About the Time and Effort You Can Commit
Fixer-uppers aren’t just financial investments—they’re time investments too.
Are you handy enough to DIY some projects? Do you have the time, energy, or budget to hire contractors? Renovations can take weeks or months, and delays are common. Make sure you’re ready for dust, downtime, and weekend projects.
Connect with contractors and builders through our builders and contractors network who understand renovation timelines and can provide realistic project estimates.
3. Know the ROI Before You Renovate
Not all upgrades offer the same return on investment. Talk to a real estate agent or appraiser about what improvements are worth it in your market. The goal is to make updates that will add real value to the property, especially if you plan to sell in a few years.
In some cases, buying a move-in ready home might actually be the smarter long-term play.
Work with agents who specialize in fixer-uppers through our realtors and wholesalers network to identify properties with the best value-add potential in your market.
Planning a Fixer-Upper Purchase That Makes Financial Sense?
Renovation properties can build equity fast—if you plan wisely. Here’s how to approach it:
🔨 Use the FHA 203(k) Renovation Purchase Loan calculator to finance purchase and repairs together
🏗️ Explore the Fannie Mae HomeStyle Purchase calculator for more renovation financing flexibility
💼 Connect with experienced contractors through our builders network
📊 Evaluate profit potential with the Fix & Flip Profit calculator before making offers
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