The popular wisdom, if you want to get into a certain neighborhood, is to buy a fixer-upper (at a lower price) and fix it up.
But here’s the truth: buying a fixer-upper is never going to save you money unless you do all the work yourself.
Recently, a couple called me about a homebuyer support session. In these sessions, I walk clients through a property that they’re considering buying and tell them what’s realistic in terms of renovation.
In this case, I had actually already walked the exact property with another homebuyer support client – who had clearly decided not to purchase.
This couple on the phone told me that they love the area but can’t afford a fully finished townhouse in the neighborhood.
Because radical honesty is a core value of mine, I said, hold on a second. Do you think that buying a rundown brownstone that needs complete gutting and renovating, plus an addition, is going to cost less than a fully finished townhouse?
They did think that.
Instead of selling a homebuyer support session, I told them that there was no way that buying a fixer-upper and doing a full renovation would ever cost less than buying a move-in ready townhouse in the same area. (Unless you do all the work yourself!)
However, here are the benefits you DO get when you purchase a fixer upper. You won’t save money, but you do get to:
- Choose the location
- Decide the finishes and fixtures and create an interior space exactly how you want it
- Invest in an up-and-coming neighborhood
There are lots of benefits to buying a fixer-upper, but saving money isn’t one of them.
If you ARE ready to buy a fixer upper, let me support you.
Want more info about flipping houses? Check out my video, To Flip or Not to Flip.