Fixer-Uppers: Good Investment or Money Pit?

Fixer-Uppers: Good Investment or Money Pit?

You finally found the home of your dreams. It's in the perfect location, super close to your office, and the neighborhood is amazing! The only thing is....it's dated. Is this a deal-breaker? There are many pros and cons to weigh when putting an offer on a home that checks all of the boxes but is in need of updates. For those who can see beyond what’s in front of them and envision how to transform a space, there is a huge opportunity for a substantial return on investment (ROI). For example, Wilson Group helped a buyer purchase a fixer-upper in 2016 for $420,000. With a vision, $150,000, and some excellent contractors, they were able to make their Craftsman Bungalow a fully renovated, modern beauty. And just 6 years later our clients got to reap the benefits of their hard work when selling their home. Yielding a 26% return on investment, allowed our clients to put that toward their next dream home. But how do you know if a fixer-upper is for you? We recommend you weigh the pros and cons.

Let's take a look at the pros... 

1.)  You can have the best of both worlds!

Mix the old with new and your home will be full of character that is customized to suit your needs. Adding windows or sliding glass doors can instantly change the mood of your home with a bright and modern look. 

2.)  You get to visualize your dream home into a reality.

From updating a kitchen, putting in a patio in the backyard, to every small, tile detail in the bathroom. You get to make this place your own.

3.)  Your additions and updates will add to your home’s ROI (return on investment) for when you decide to sell.

You’d be surprised how much money certain home improvements can get you, take a look at the graphic below!

4.)  There will be less competition when submitting an offer.

Not everyone can see what Wilson Group does when stepping into a fixer-upper. We’ll help you visualize what could be and connect you with the right vendors to make it happen. 

5.)  You’ll save the money you would’ve spent on a brand new home and can put that towards renovations.

And remember the ROI chart? The money you invest will end up back in your pocket when you go to sell it!

Now for the cons...

1.)  Fixer-uppers are not for everyone!

If walking into a home improvement store is your worst nightmare, a newer home might be a better fit for you. These renovations can sound exciting for some and like a headache for others. Which is it for you? 

2.)  “It takes time, energy, planning, and there’s already enough on my to-do list!

The last thing I want is to come home from a busy day with more work to do.” If this sounds like you, then a new build that’s move-in ready is the way to go. 

What a fixer-upper's kitchen may look when you move in...

VS. 

An updated home

3.)  Your dreams are too big for your budget.

It is easy to get ahead of yourself and go overboard. Careful planning and consideration are crucial when prioritizing updates and estimating costs. 

There’s a lot to consider when buying a home! If a fixer-upper sounds like fun, Wilson Group can help you locate one and advise on updates that’ll give you the best ROI. 

Looking for more transformation inspiration for ROI? Take a look at our Pinterest: