Buying a fixer-upper in Atlanta can be an exciting and sometimes challenging experience. It allows you to put your own personal touch on your living space while potentially saving money and making a wise investment. However, before jumping into such a big decision, it is important to carefully consider the pros and cons of buying a fixer-upper in Atlanta. ATL Real Estate Services works with buyers and investors in Atlanta, as well as throughout Georgia, to find these sorts of properties. Keep reading to learn more about what you can expect if you were to spend your money and purchase a home that needed work.
Fixer-Upper Properties Are Typically Less Expensive
One of the biggest advantages of buying a fixer-upper property for sale in Atlanta and in Georgia is the lower cost. These homes are often priced lower than move-in ready homes, making them an attractive option for those on a budget or looking to save money on the purchase. Additionally, if you are willing to put in the time and effort to fix up the home, it can be a great investment. Fixer-upper homes often appreciate in value more quickly than move-in ready homes, meaning you could potentially make a profit if you decide to sell the home at some point in the future.
The reason for this is because when you purchase a fully updated, renovated/remodeled home on-market with an agent, the seller has already done all the work and they are maximizing their work to put the home at top dollar. That means, unless you get a screaming good deal, you’re getting an amazing home but you won’t have any equity in it, outside of the 5-20% of the sales price that you put down as your down payment on the home required by the bank. So if you’re willing to put in the sweat equity and rehab costs, you could turn out on top if you buy a fixer-upper.
You Can Customize Your Fixer-Upper Property
Another advantage of buying a fixer-upper in Atlanta is the opportunity for customization. You can choose the finishes, colors, and layout that best suit your style and needs. Whether you want massive bedrooms and bathrooms, a large open area concept kitchen and living room, or even adding on a 2nd story to your home, you can get with a GC and come up with the design and feel of the home you’ve always wanted. This can be a fun and rewarding process as you get to create the home of your dreams. Many people love the opportunity to make their home anything they want.
Be Mindful of Hidden Costs
However, it is important to consider the potential drawbacks of buying a fixer-upper as well. One of the biggest challenges is the hidden costs. It can be difficult to know what repairs and renovations will be needed until you start tearing things apart. This can lead to unexpected expenses and budget overruns, which can be frustrating and overwhelming. As we have experienced with our contractors and crews, you can always plan on your rehab budget to be a certain dollar amount, but that never happens. There are always unforeseen items that pop up because you wouldn’t have known about them until you opened up the floors or walls. A rule of thumb, the older the home, the more issues you’re bound to run into. 100 year old homes are beautiful and charming, however, you’re going to have a much bigger rehab budget for this kind of home than a home built in the early 2000’s or even 1980’s.
A Fixer-Upper Will Require Some Work
Another challenge of buying a fixer-upper is the time and effort required to make the property livable. Fixing up a Atlanta home takes time and energy, and if you are not prepared to put in the work, it can be a difficult and stressful process. That means, whether you’re doing the work yourself or you’ve hired a contractor to do the work, the process can require a lot of energy and create a lot of stress. Additionally, there is always some level of uncertainty when buying a fixer-upper. You never know what you might find once you start tearing things apart, which can lead to unexpected setbacks and delays. When buying a fixer-upper property in Atlanta, be sure to pad your budget a bit so you are prepared for the unexpected.
Financing Challenges
Financing a fixer-upper property in Atlanta can also be more challenging than financing a move-in ready home. You may need a special type of loan, such as an FHA 203(k) loan, which can have stricter requirements and higher interest rates. Before buying a fixer-upper, be sure you are pre-approved for a conventional loan or that you have other financing in place. Lots of governement loans don’t offer loans for these types of homes because they may not be considered livable. So, you’ll definitely want to do your research before signing a purchase agreement for any below average condition property.
Buying a fixer-upper home can be a great option for those looking to save money and create a personalized living space. However, it is important to carefully consider the pros and cons before making such a big investment. Be prepared for unexpected costs and delays, and make sure you are willing to put in the time and effort required to fix up a home. With careful planning and a willingness to learn, buying a fixer-upper can be a rewarding and profitable experience. If you’re looking at buying a fixer-upper in Atlanta, reach out to our team to learn more about what’s available. We’re certain we can help you find exactly what you are looking for! 404-439-9984
