When you purchase a home, the deal is usually sealed when you sign the papers, and you can begin moving in. 

But with a fixer-upper, closing on a house is just the beginning of your journey. Turning the property into your dream home could take thousands of dollars and several months (or even years) of consistent work. 

While designing your house from scratch may sound like too much to take on, the excitement and gratification of this journey make it worth it for many people. There’s no feeling quite like watching a drab property transform into a space you designed out of love.

But although the final result may be worth it, it’s still essential to have a realistic idea of what you’re getting into. To give you that idea, we’ve compiled the pros and cons of fixer upper houses below. 

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Pros of Buying a Fixer Upper Home

Buying a fixer upper is a great way to get more bang for your buck. Here are 4 important pros fixer upper houses can bring. 

1. Customizability

One of the most appealing aspects of fixer uppers is the ability to customize your dream home. With ready-to-move houses, it’s often hard to find every single feature you desire, so homeowners often end up compromising on certain aspects. 

But since fixer uppers are all about major renovations and redesigning, you have complete freedom to make your home just how you want it. From upgrades to materials, rooms, finishes, colors, and decors, you get to curate every aspect of the place you will eventually call home. 

Of course, you’ll need a sound knowledge of all the different materials available to be able to pull off a successful remodeling project. We recommend checking out Agora Marketplace for that. 

2. Low Purchase Price 

Compared with move-in-ready homes, fixer uppers cost significantly less per square foot. This makes it easier to purchase a home, get a house in an expensive location, or buy a bigger property than your budget would otherwise allow. 

The low purchase price also means both your downpayment and monthly payments will be lower, making it easier to afford your house in the long run. 

3. Less Market Competition 

In the cut-throat real estate scene, affordable houses in good locations often have buyers squabbling to purchase them. But since not many homeowners are interested in buying fixer-uppers, the market competition is way lesser, making it easier to purchase one at a knockout price. 

4. Low Taxes 

Purchasing a home inevitably comes with a hefty annual property tax bill. Local property taxes are calculated according to the estimated value of your home, meaning the larger and more luxurious your house, the more taxes you will pay. 

But since fixer-upper homes are typically worth less, they come with lower property taxes. However, this is only until renovations are underway. Once your dream home is all glammed up, its value will go up, and so will the taxes. 

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Cons of Buying a Fixer Upper Home

Fixer uppers clearly have many advantages, but their demand is still limited. This is because, though they offer great value, it takes a lot of work, time, and money to get them into shape. If you’re taking on a fixer upper project, here are 4 cons to keep in mind.

1. Expensive 

The biggest con of fixer upper houses is that sometimes, repairs and renovations can be very expensive. 

Typical costs for a complete remodel range from about $18,000 to $77,000, but this is just an estimate. 

The actual cost can be way higher if you decide to incorporate all the design features homeowners still want in 2023. On some occasions, the purchase price plus the renovation costs could add up to more than you would’ve spent on a move-in-ready home. 

2. You Can Go Over-Budget 

When remodeling an old property, you’re likely to encounter some surprise issues you didn’t consider when budgeting. Though it is possible to avoid this problem by carefully inspecting the house ahead of time and having a flexible repair budget, there are still chances you might go over-budget. 

This is because older houses come with hidden problems that initial inspections may not reveal, making it challenging to develop an accurate renovation budget ahead of time. So even if you have a good remodeling budget, you may have to stretch it out even further.  

3. It’s Very Time-Consuming 

Fixer uppers can take months or even years to get renovated. So if you’re planning on purchasing one, be prepared to make a serious time commitment to this project. 

You will either have to find temporary accommodation when you work on building your dream home, or compromise by living amidst active construction. 

Whichever the case, fixer uppers will take a great deal of patience, time, and dedication before you can enjoy the final results. 

4. Limited Financing Options 

Traditional mortgages do not cover renovation costs, so if you’re seeking a loan for your property, be prepared to have a limited range of available financing options. 

You might be able to find some special renovation loans that accommodate renovation costs, but these generally come with limitations on what upgrades you can add. 

This means there’s a very high chance that you’ll have to invest out of pocket in your fixer upper, so make sure you have a budget to fall back on in case you cannot secure a renovation loan.