There are many reasons to buy a fixer-upper, starting with a lower price point. This may allow a buyer the opportunity to move into a neighborhood that wouldn’t otherwise be affordable. It also allows a homeowner to turn sweat equity into home equity as the house value increases. Additionally, it’s an opportunity to customize the home to your personal taste rather than living with someone else’s idea of a “dream kitchen.” And there is also typically less market competition for fixer-uppers.
On the downside, renovation costs will require time and hard work, may spiral and break the budget, can be stressful, and may need special financing if a house is in particularly poor condition.
