You’ve always dreamed of buying a fixer upper house. Fixer uppers are usually low prices, have potential long-term value, and have the opportunity to customize the space. However, these homes also carry risks such as delays in construction and high contract costs.
Before making a leap from Redmond apartment, Eugene rental house or Helena’s home, we’ll take a look at these pros, cons and tips to help you determine if buying a fixer upper is the right move for you.
In this article:
What is Fixer Upper House?
Fixer Uppers are homes that need repairs, from cosmetic updates to more important renovations. Many are still easy to live in, but in many cases they require more work than the average home. Let’s take a look at the pros and cons of purchasing a fixer upper.
Pros of buying fixer uppers
Lower Purchase Price: Fixer Uppers are usually listed at a lower price than move-in-enabled homes, as repairs often require. This means a lower down payment and freeing up some cash towards renovations. Customization: An outdated kitchen doesn’t have to be a trade breaker. You can update and design your home exactly how you want. Possibility of stock growth: Fixer upper renovations can increase the value of your home over time. Buy at a low price, create smart updates and sell at the right time, and you can create profitable investments. Less Buyer Competition: Fixer-Uppers doesn’t have much interest in it, so you don’t have to worry about competition when making an offer for one.
Cons of buying fixer uppers
Unexpected costs: Even if you are planning a major renovation, hidden issues such as structural issues, outdated systems, mold damage, or pest invasion can lead to costly, unplanned repairs. Time Commitment: Renovating fixer uppers can be very time consuming. Depending on the state of your home, you may need to prioritize your project just to make it more livable. Professional Skill Requirements: If you don’t have the skills (or time) to renovate yourself, the employment contractor may add an overall cost and offset the savings from purchasing a Fixer-Upper. Increased Stress: Living through renovations can be uncomfortable and confusing. Confusion, dust, and ongoing to-do lists can quickly become overwhelming. Funding: Fixer Upper’s loans can be a little more complicated than the average mortgage. Some options bundle the cost of the home and expected renovations, while others only cover renovations. Talk to your lender to determine which one is better for you.
How to find a fixer upper house
Fixer-Uppers can be found in the same way as finding a regular home for sale online. Most sites like Redfin can filter by home feature and select “Fixer-Upper”. Local real estate agents can also help you find a home that meets your criteria.
Real Estate auctions are another way to find a Fixer-Upper home for sale. However, be aware that there may be hidden issues as you will need to buy a house at auction.
You can also see the forecast and short sale properties, as they are often sold below market value.
What to look for when purchasing a fixer upper?
Search for fixer upper houses that meet your home search criteria and balance your renovation and repair time, capabilities and budget. Even if you plan to fix things, you will need to do due diligence to make sure your home is right for your situation.
Place of the house
The location of the home buying process is location. Find fixer uppers in established neighborhoods close to amenities, such as shops, entertainment, restaurants and more. Consider whether the area has a good walking score or public transport option.
You’ll also want to consider other homes in the area when choosing how and how to upgrade at home. When it’s time to sell your property, you’ll want to ensure that your home is comparable to a nearby home, and the updates you add will add value.
Size and layout
Consider whether the size and layout of your home meets your space needs. You can renovate the layout of your home, but choosing a layout that is already working will make other updates and repairs easier.
If your property has a small room or closed floor plan, remove the wall and open a space cost of between $1,000 and $10,000 on average. Loading walls and more complex materials are even more costly.
Overall condition
The best fixer upper is a home that does not require extensive structural repairs. Cosmetic repairs, such as the example below, are easy to manage and usually do not require permission.
Fresh interior and exterior paint New carpet and flooring kitchen cabinet research and hardware replacement appliance upgrade replacement landscaping cleaning
Changing the utility system, moving walls, replacing windows, adding or removing parts of the house are more expensive and labor-intensive tasks. In most cases, a permit, inspection and contractor is also required. By purchasing a fixer upper in good construction, you can ensure that your prepaid savings don’t disappear too quickly.
Testing Insights
Carefully consider the results of your tests you are riding at home. Determine if the cost of repairs is worth the initial investment of buying a home and fits your renovation budget. If the test reveals serious structural damage, extensive mold growth, or serious pest damage, it may be time to leave.
Possibility of gratitude
It is essential to assess the above factors when considering the likelihood of evaluation of fixer uppers. Look for properties in a growing region that can be strategically renovated to optimize resale value in the right market.
Whether you are trying to flip your home for profit or want to make a wise investment for your future, analyzing each aspect can help you understand the possibilities of gratitude.
How to Buy a Fixer Upper in 7 Steps
1. Decide on the budget including renovations
Understand how much you have and consider the renovation budget. Investigate general renovation costs, determine available funds, and factor in financial cushioning for unexpected costs.
Some types of fixer upper loans allow you to combine the price of your home and the cost of renovating it into one mortgage.
>> Example of Redfin: 2025 5×7 bathroom renovation costs collapse
2. Find the right fixer upper
Use Redfin’s Home Search Filter to increase the option to the desired area by selecting “Fixer-upper” under the Home feature. You can also view property auctions, foreclosures and short-term sales properties as mentioned above. A good real estate agent can also help you search for fixer uppers that meet your specific requirements and budget.
>>Read more: How to Choose the Right Real Estate Agent in 10 Steps
3. Get a thorough home inspection
A home inspection is important when purchasing a home, but especially when purchasing a fixer upper. Even if you are already planning a major renovation, a qualified home inspector will thoroughly examine the entire home and identify issues that need to be addressed. Pay close attention to electrical systems, roofs, foundations and HVAC systems. Consider these additional tests for specific concerns.
>>Read more: Buy a home with a mold: Important considerations for buyers
4. Consult with your contractor
While some home renovations can save you a lot of money, at least consulting with a contractor can be a great help. They can tell you which renovations are possible based on the structure of the house, which projects add value to the house, and which specific items require permission. If you are planning on using a contractor, consulting with multiple will help you decide which one is right for you to lead your project.
5. Explore Finaster Upper Fundraising
There are several types of loans that can help you buy fixer uppers and cover renovations. Talk to your mortgage lender to learn about the specific loans they offer and check out the breakdown of the most common loans below.
6. Understand potential resale value
While many buyers want to flip the fixer upper for profit, the resale value depends on more than just a renovation. Location, comparable home prices and market trends all play a major role. It is also important to properly renovate the area. Improvements in low-cost areas, or cutting corners in high-end areas, can undermine your return on investment.
7. Create smart offers
When you’re ready to make an offer with a fixer upper, negotiate a good balance between listing prices and repair costs. A home that requires critical repairs can give you good leverage to negotiate a low price with the seller.
You can still make an offer without a real estate agent, but having an experienced agent will help you negotiate and get a simpler process and peace of mind for your purposes.
Funding options to buy fixer uppers
Here is a quick comparison of the four common loan options you can use when purchasing Fixer-Upper.
Loan typedown typedown folycredit scorebest forkey limits fha 203(k) standard 3.5%
(10% <580) 580+ 3.5% decrease 500-579 requires 10% major renovation
Structural Repairshud Consultant is required
No extravagant upgrades
Primary residence only FHA203(k)Limited3.5%
(10% <580) 580+ 3.5% reduction 500-579 with 10% minor upgrade
COSMETIC FIXESMAX repairs $35,000
Non-structural improvements only home style renovations only 3%-5%620+Authorized contractor projects
Flexible USEMAX LTV 97%
For existing homes, only a minimum of 3%-5% between 620-660DISASTER-PROOFING
Custom Upgrade Renovation Limits = 75% of Home Value
FIXER-UPPER FAQ
How much does it cost to fix the fixer upper?
The fixed price of fixer uppers varies greatly depending on the range of repairs required. On average, you can expect to spend at least 10% of the home’s value on a major renovation, or more if you need a major repair. Carefully analyze hidden issues with home prices and personal budgets before purchasing renovations, materials, expected costs of labor, and fixer uppers.
Is it worth buying a fixer upper?
Buying a fixer upper is valuable, especially for those who love the project, prepaid costs savings and customization options. However, it is important to weigh risks and drawbacks like time commitments and expensive repairs to determine which one is best for you.
Is Fixer-Upper Homes a good investment?
Fixer Uppers are usually sold at a low price for the repairs you need. With a lookout for the housing market for proper renovations and the best time to sell, fixer uppers can change great profits.
Can I get a mortgage from Fixer Upper?
Yes, you can get a mortgage from a fixer upper home. Some finance options combine home costs with renovation costs. Talk to your lender to determine what the right path is for your particular home and your financial situation. Depending on the state of the home, some lenders may require certain financial options.
Can I buy a fixer upper as my first home?
They sell at a lower price than ready-made homes, so fixer uppers can be a good option as first-time home buyers to break into homeownership. However, it becomes even more important to plan carefully and be flexible. Homeownership already comes with its own list of risk, maintenance and financial awareness, so if the fixer upper is your referral, prepare that list for growth.
At what point does the house not worth fixing?
If the cost of repair exceeds the potential increase in home value, it may be time to walk away. Beware of fixer uppers with extensive structures, pests, or mold damage. These can be extremely expensive to treat and can offset the perceived savings on the overall cost of buying a home.
