Should Your First Home be a Fixer-Upper?

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Mark Brock is a fan of fixer-uppers. He bought his first in the mid-70s, a circa-1935 house in Columbia, S.C., that was rich in history but short on modern conveniences. “Very little had been done to it, but it was in good shape and structurally sound,” he says. It turned out to be a good investment of time, money and sweat equity. It takes a certain mindset—and budget—to see the project through, and a slow market is also making more of those “handyman’s specials” available and attractively priced. How can you tell if the house is a diamond in the rough worth excavating? It has to do with the actual house—and you. Here are some considerations to make when contemplating buying a fixer-upper. Is the Problem Cosmetic or Structural? Do you have the skill set, time and desire to do the work necessary when buying a fixer-upper? Cosmetic fixes are those that would make a house prettier, like replacing unattractive awnings or painting or landscaping—“things that won’t cost a lot of money and that won’t require a lot of contractors,” says Ilona Bray, author of Nolo’s Essential Guide to Buying Your First Home. You’re more likely to find these kinds of homes now, too. But if the problem is structural you might want to pass, especially if you’re new to home repair. Not only will it be expensive to fix, but it could take a while to repair and be a sign that the house is not in good shape. Structural problems would involve anything that requires a contractor or knocking down walls, like issues with the foundation, termites or plumbing. These are things that should be found on a home inspection, which generally happens after you’ve made your bid and before closing on the house. If any structural issues are found on that inspection, think seriously as to whether or not the home is going to be worth the extra cost. Do You Have the Time? “If you’re the kind of person who wants to go to the gym after work and wants your weekends free to go to the movies, then you’re not a candidate for a fixer-upper,” says Brock. Fixer-uppers are time-consuming, and they disrupt your life. But if you have an alternate place to stay while the work is being done or can continue to rent and pay the mortgage on a new place, the disruption won’t be such an issue. Of course, if you’re a DIY diehard and love the process of turning one thing into another, then the disruption might not bother you as much as someone who likes things neat and clean and finished.

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