There’s no doubt that affordability is a challenge in today’s market. But that doesn’t mean you have to put your homeownership dreams on hold.
If you’re open to a little home renovation work—or hiring someone who is—buying a fixer-upper in the Triangle Area could be a smart way to get into the housing market at a lower price point. Here’s what you need to know to decide if this is the right move for you.
What’s a Fixer-Upper?
A fixer-upper is a home that’s livable but needs some updates. This could mean simple cosmetic changes, like removing wallpaper and updating flooring, or larger repairs, such as replacing a roof or upgrading plumbing.
While these homes require some TLC, they come with several key advantages, especially in today’s market:
- They’re More Affordable: Because fixer-uppers need work, they usually cost less upfront than move-in-ready homes. According to a StorageCafe survey, fixer-uppers are typically about 29% cheaper, making them a great option if you’re struggling to find a home within your budget.
- Less Competition: Many buyers are looking for turnkey homes, which means fewer competing offers when you make a bid on a fixer-upper.
- Build Equity Faster: A fixer-upper allows you to customize your home to fit your needs and style. Plus, smart renovations can quickly increase its value, giving you a strong return on investment.
As The Mortgage Reports explains:
If you’re a house hunter who’s not afraid of sweat equity, buying a fixer-upper could be your ticket to homeownership. Doing so could lead to big savings, even in some of the nation’s largest and most popular housing markets. Plus, adding the right features could help your investment.”
What To Know About Buying a Fixer-Upper
Fixer-uppers offer exciting possibilities, but there are a few things to consider before making a purchase.
- Do You Have a Gameplan? Consider if you have the time, skills, or budget for renovations. Be honest about what projects you can handle yourself and what you’ll need to hire out.
- Prioritize the Repairs and Upgrades: Not everything has to be done at once. Tackle renovations in phases based on your budget and what’s most important.
- Location Matters: Your renovation investment should pay off in the long run, so choose a home in the Triangle area with rising property values and sought-after amenities like parks and restaurants.
- Get a Home Inspection: A professional inspection is essential to uncover any hidden issues and understand potential renovation costs.
- Budget for Surprises: Unexpected repairs and delays are common, so set aside extra funds for unforeseen costs.
Talk to a Lender About Financing: Special renovation loans are available for fixer-uppers, but they often come with spending limits and specific requirements—so be sure to consult with a Triangle area lender.
Bottom Line
A fixer-upper isn’t for everyone, but if you’re open to putting in some work, it can be an affordable way to buy a Raleigh home and build equity quickly.
With the right mindset and strategy, you can turn a less-than-perfect house into your dream home.
If you’ve found a fixer-upper that fits your budget and vision, contact Linda Craft Team Realtors to explore your options!
