The short and obvious answer to that question is no. What you see on your screen is usually a nicely staged snapshot and an unrealistic depiction of the blood, sweat and tears that take place when the camera isn’t rolling. If you are on a tight budget and adept at home repair and styling, finding the right fixer-upper may be the solution to your problem on how to afford a first house. However, if you have to work all the time to afford the house and are not very handy, you might want to take a pass. You don’t want to get saddled with a money pit that will give you nightmares over the course of ownership.
Before taking the plunge into a fixer-upper, think about your intention for the property. Is this a house you will enjoy making into a home? Are you in it for the long haul, in terms of time, labor and the financial resources it will require before your vision evolves into a finished home? If so, a fixer-upper may be just the ticket for you as a homeowner.
Assessing the Real Cost of a Fixer-Upper
Here is a quick to-do list that can help you determine if a fixer-upper is right for you. These considerations can help you decide what you can afford, how much to offer and whether that particular house is right for you:
- Decide what you can “DIY”
- Get solid renovation estimates
- Research permitting requirements and costs
- Double-check structural work pricing
- Solidify your financing costs
- Calculate a fair offer
- Include inspection contingencies
Surface vs. Structure
When it comes to fixer-uppers, the key is good discernment on what is purely cosmetic in nature and can be fixed with craftiness, talent, and a lot of paint and elbow grease versus what may put you in financial constraints for a long time to come. Be proactive and don’t be afraid to ask for a price reduction to help offset the work to be done. Also, there are loans that will help with renovation costs. Hire a structural engineer to make sure you know what major work the property requires that may put the project beyond the reach of your wallet.
What is Doable?
Investing in a fixer-upper, provided you have the time, skill and financial resources to make it into your dream home, could wind up being a wise investment. Some improvements that are totally reasonable, both financially and in terms of DIY or reasonable contractors, include:
- Refinishing a floor, laying tile or new carpet
- Painting, stripping wallpaper and patching walls
- Fixing broken windows
- Replacing doors
- Changing out receptacles and light switches
- Adding a deck
- Painting the home’s exterior
- Replacing bathroom subfloors
Red Flags
Unless you have fallen in love with a particular home and money isn’t a concern, you might just want to pass on properties that have major structural issues and need capital improvements. This would include issues such as:
- Replacing the HVAC systems
- Foundation work
- Replacing the roof
- New plumbing, electrical or sewer systems
- Concrete work and new driveways
- Replacing windows
- Complete kitchen or bath renovations
- Building additions or garages