Are Fixer-Uppers Worth the Effort?

Reality home improvement Television shows are on a “Fixer Upper” craze and this has left some wondering if they should take the task upon themselves to fix-up their own home. Below we explore a recent study on fixer-uppers, their savings, and other considerations.

57% of Americans Don’t Believe Fixer-Uppers Are Worth It

People typically take on fixer-upper homes when they want to put a personal touch on a home that is not in the best of shape, this allows a lot of people to purchase a home in an otherwise expensive neighborhood. There is also a common practice of “flipping” homes, where people take on run-down houses in nice areas and renovate them to turn around and sell for a profit. 

ForSaleByOwner conducted a fixer-upper survey of 1,000 Americans to see what people really thought about taking their own hammer to nail. The survey found that about 57% of Americans are opting to avoid a fixer-upper because of the stress and disbelief in any savings. 

• 28.5% said there would be no savings 
• 28% said it is not worth the stress. 

It seems that while Americans are busy working hard in their careers, they are not as willing to spend their free time fixing up a property.

What Are Americans’ Home-Buying Priorities?

Americans’ top priority belongs to their commute time as respondents reported that this is 1.5 times more important than if their significant other likes the home. This can perhaps be attributed to growing average commute times and movements for better self-care and family time. Families would now rather live closer to their homes than in the desired location just to cut down on travel time. 

Americans also care about being close to outstanding schools (31%) and moving into a renovated space (29%). See priorities by age in the image below:

Potential Savings 

As it Turns out only about 43% of Americans believe that fixing-up a home will save them any money, but 19.6% believe it will save them more than $20,000. Americans should consider the benefits of remodels because the average amount saved from a fixer-upper in the U.S. is almost $29,000 based on national average home listings. 

Of course, these numbers are subject to change a little depending on the state you live in and the amount of money you are willing to spend on renovations. For example, If you want to save the most on a remodel you might want to think about doing it in California, Colorado or Massachusetts where average savings are between $40,000 and $55,000.

However, these states also have some of the highest average listing prices so make sure that you factor in how much renovations will cost to ensure you make a sound investment. See the average savings by state below:

Fixer-Upper Property Considerations

Now you are probably thinking about how you can save the most money by going this route.  Here are some good things to consider before going through with your fixer-upper.

• Finish what you started
  • Make sure you have the means to both start and finish the project or you could find yourself in some trouble as you get into it.
• Purchase a safe property
  • Have a contractor and an inspector look at the home before you purchase. Not having the home inspected could lead to unforeseen expenses and delays.
• Find the right people
  • Bring in people who you can not only afford, but also trust. It is important to contact reputable companies and workers to ensure the most quality goes into your home.

Some professionals have gotten so good at this it is like they have a formula for fixer-upper success. Here are some pieces of advice you might hear from an accomplished property flipper:

• Is there enough damage?
  • It is important to know if your home is worth the fix. Is there enough structural damage and out of date fixtures to renovate?  Sometimes basic cosmetic procedures like new paint and maybe a new counter will bring life back to an old home that can still stand.
• What kind of time does it take?
  • If a fixer-upper is something you really want to do, then be ready to get to work. This is going to take up most of your weekends, free time, and possibly even dip into your work schedule until it is completed.
• Can I afford to do this?
  • Sure you might save some money by fixing-up a home, but do you have the capital to do it? If you can barely make the payment on the home, then you won’t be able to afford renovations or any unexpected expenses that may come with fixing-up your home.

If you are going to invest in a fixer-upper, remember to do your research and have the property professionally inspected. If you’re listing your home keep the home-buying priorities of your target buyer market in mind — this will help you attract the right buyer and get your home off the market faster! 

Courtesy of Realest Blog