5 Things You Need to Know Before You Buy a Fixer Upper

Buying a fixer upper is a great way to score an unbeatable deal on a new home. But unless you have a lot of experience flipping houses, you have to be extra careful about making sure that you don’t get in over your head—or over your budget. While you certainly save money in the short term when you buy a fixer upper, there is a lot of expensive work that goes in to turning a not-so-great home into a valuable showstopper. And the time to figure out whether the fixer upper you’re interested in is worth the time, money, and effort it needs is before you put in your offer, not after.

The market for fixer uppers exists both concurrently to and separately from the standard real estate market. The rules are a little bit different when you’re dealing with homes that aren’t quite ready for move in, and in many cases, you have a lot more buying power than you would with a turn-key residence. Armed with a big imagination and a bit of realism, you can turn a small investment into a massive pay-off—you just have to make sure that you go into the process with as much information as possible. Below, we’ll go over the five things that you need to know in order to buy a fixer upper with some real investment potential.

Location is Everything

Good Bones Matter, Too

Speaking of Home Inspections…

Other Inspections You’ll Want to Get

  • A roof certification, which will give you a comprehensive breakdown of some key roof-related features, including materials used, any problem areas, and how long you likely have until the roof will need to be replaced.
  • A pest inspection, which will look for the existence of any harmful pests, including rodents and termites.
  • A sewer line inspection, which evaluates the state of the home’s sewer lines and septic tanks.

Create a Realistic Budget

There is no guarantee with anything in real estate, and the same goes for when you buy a fixer upper. A big imagination is necessary, but so is smart financial decision making that is in line with both your budget and the market you’re buying in. If you’re ready to take the leap, start working with your real estate agent to narrow down your options in terms of location and properties, and find the fixer upper of your dreams.