There's a lot to consider when you're house-hunting, but one of the biggest questions might be this: Do you want a home that you could move into today, or do you want to fix up and customize your home to your liking? To help you make that decision, we've put together a guide outlining the advantages and disadvantages of purchasing a fixer-upper.

What Is a Fixer-Upper?

Even if you couldn't define a fixer-upper off the top of your head, you likely know one when you see it. Fixer-upper homes are usually considered technically livable, but often need major maintenance work. Every fixer-upper is different, though. Some fixes might be relatively easy (like replacing outdated appliances or ripping up carpet) while others might require major work to address issues like structural damage or biohazards (like mold or asbestos).

Pro: Better Value

Because someone hasn't already poured time and money into a fixer-upper, they're often available at lower prices than turnkey homes. You might be able to get a much bigger house for the same amount you'd pay for a smaller move-in-ready home. Fixer-uppers can also be your ticket into a neighborhood where a move-in-ready home would be outside of your budget.

Con: Red Tape

Some lenders might see a fixer-upper as a risky investment, meaning that you could have a harder time finding someone to finance your dream, or that you could get stuck with a more expensive loan. On top of that, some types of renovations—like room additions and window installation—might require obtaining a permit from your local municipal office, which can drag out your reno timeline.

Pro: You're in Charge

Once the paperwork is signed and a fixer-upper is yours, you can tailor it to suit your needs and style. Don't like the master bath? Remodel it. Wish you had a customized deck in the backyard? Build one. With a move-in-ready home, you're subject to the last owner's (or the construction company's) interests. With a fixer-upper, you're the one who decides where to invest your funds, what materials to use, what contractors to hire, and everything in between.

Con: Unpleasant Surprises = Budget Challenges

What could possibly go wrong? A lot! Even with home inspections, you never truly know what you're getting into, and demolition may reveal significant issues (like structural problems or poorly done updates from previous owners), especially in an older house. And because the likelihood of a nasty surprise is so high, the "fixing" part of a fixer-upper can be difficult to budget for. You may have budgeted the exact right amount for replacing the kitchen floor, but if you find asbestos in the subfloor, you'll have to swallow the cost of removal and disposal, too.

Pro: Lower Property Taxes

In some places, property taxes are calculated based on a property's most recent purchase price, so purchasing a less expensive fixer-upper could mean paying less in taxes, at least initially. There are many factors that can go into determining how your property tax is calculated, so be sure to do your research carefully.

Con: Construction Zone

Renovations—especially major renovations—take time. Sometimes months. And if you have to pause renovations for any reason (budget problems, permit issues, etc), it could even take years to finish a big project. During that time, you'll either have to secure temporary housing or learn to live in the middle of a construction zone.

Pro: Investment Opportunity

If you do it right, a fixer-upper is an investment. Transforming a pumpkin into a property that's move-in ready can pay off if you decide to sell later. Even if you purchase your fixer-upper with the intent of making it your forever home, knowing you'll have a better chance at success if you do decide to sell can take a weight off your shoulders.

Making a Decision

When buying a home, everyone's situation is unique. A fixer-upper could be the perfect choice for one person, but a terrible choice for another. Always take your budget, preferences, and lifestyle needs into consideration, and don't be afraid to consult with your real estate agent. Agents from Better Homes and Gardens Real Estate The Masiello Group have the expertise to help you make the best decision for you and your future.

The Masiello Group is a second-generation family company that has been a trailblazer in New England real estate since 1966. With now more than 35 offices throughout northern New England, we're the largest residential real estate firm north of Boston to offer a complete suite of home services, including buying, selling, mortgage, title, insurance, relocation, and more.

Our agents are eager and excited to meet your real estate needs!

You can find more information on today's market and other real estate trends by reading our blog weekly at https://www.masiello.com/news-and-updates/.