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      For Your Life Travis Campbell July 21, 2025

      Are “Fixer-Uppers” a Smart Move for First-Time Buyers? (Maybe Not)

      Buying your first home is a huge milestone, and snagging a “fixer-upper” can be tempting. With home prices soaring in many markets, first-time buyers often consider these properties a way to break into homeownership without breaking the bank. The promise of building equity through sweat and creativity is appealing, and TV shows make renovations look like a fun weekend project. But is a fixer-upper really the best move for someone new to the world of real estate? Before you grab a hammer and start dreaming of open-concept kitchens, it’s worth taking a closer look at what you’re really signing up for. Here’s what every first-time buyer should consider before diving into the world of fixer-uppers.

      1. The True Cost of Renovations

      Many first-time buyers are drawn to fixer-uppers because of the lower sticker price, but the real cost often goes far beyond the purchase price. Renovations can quickly spiral out of control, especially if you’re not experienced in home repairs. Materials, permits, and labor add up fast, and unexpected issues — like outdated wiring or hidden water damage — can blow your budget. The average home renovation costs over $48,000, which can be much higher for older homes. If you’re not prepared for these expenses, a fixer-upper can become a financial burden rather than a smart investment.

      2. Time Commitment and Lifestyle Impact

      Fixer-uppers demand more than just money — they require significant time and energy. Renovations can take months or even years, depending on your work scope and availability. The process can quickly become overwhelming if you’re juggling a full-time job, family responsibilities, or other commitments. Living in a construction zone isn’t easy, either. Dust, noise, and constant disruptions can take a toll on your daily life and mental health. For first-time buyers, the stress of ongoing projects can overshadow the excitement of homeownership.

      3. Financing Challenges

      Securing a mortgage for a fixer-upper isn’t always straightforward. Many lenders are hesitant to finance homes that need significant repairs, and you may need to explore specialized loan options like FHA 203(k) or Fannie Mae’s HomeStyle Renovation loan. These loans come with their own requirements, paperwork, and sometimes higher interest rates. You’ll also need to budget for a larger down payment and possibly private mortgage insurance. Navigating these financial hurdles can be daunting for first-time buyers already learning the ropes of home-buying.

      4. DIY Skills: Reality vs. Expectation

      It’s easy to overestimate your DIY abilities, especially after watching a few home improvement shows. In reality, most major renovations require professional expertise. Electrical, plumbing, and structural work are best left to licensed contractors for safety and code compliance. Even smaller projects can take longer and cost more than you expect. If you’re not handy or don’t have reliable help, you could end up with unfinished projects or costly mistakes. For first-time buyers, the learning curve can be steep and expensive.

      5. Resale Value Isn’t Guaranteed

      One of the biggest myths about fixer-uppers is that you’ll automatically make a profit when you sell. While renovations can increase a home’s value, the return on investment isn’t always as high as you might hope. Market conditions, neighborhood trends, and the quality of your upgrades all play a role. Some improvements, like high-end finishes or custom features, may not appeal to future buyers. Most renovation projects recoup only about 60-70% of their cost at resale. First-time buyers should be cautious about banking on a big payday down the road.

      6. Inspection Surprises

      Fixer-uppers often come with hidden problems that aren’t obvious during a casual walk-through. A thorough home inspection is essential, but even the best inspectors can miss issues behind walls or under floors. Mold, asbestos, foundation problems, and outdated systems can turn your dream home into a money pit. These surprises can derail your renovation plans and drain your savings. For first-time buyers, unexpected repairs can be especially stressful and financially damaging.

      7. Emotional Toll and Burnout

      Taking on a fixer-upper is not just a financial and physical challenge — it’s an emotional one, too. The constant decision-making, setbacks, and delays can lead to frustration and burnout. It’s easy to lose sight of your original vision when you’re knee-deep in dust and invoices. Many first-time buyers underestimate the emotional toll of living through renovations, which can strain relationships and dampen the excitement of owning your first home.

      Think Twice Before You Buy That Fixer-Upper

      While the idea of transforming a fixer-upper into your dream home is appealing, the reality is often much more complicated, especially for first-time buyers. The true cost, time commitment, and emotional strain can outweigh the potential benefits. If you’re considering this path, make sure you have a realistic understanding of what’s involved and a solid support system in place. Sometimes, buying a move-in-ready home is the smarter, less stressful choice for your first step into homeownership.

      Did you know that Old National Bank has special down payment assistance programs for first-time homebuyers? Check them out here.

      This article originally appeared on Everybody Loves Your Money and was syndicated by Everybody Loves Your Money and Newstex. It was legally licensed through the Industry Dive publisher network. Please direct all licensing questions to legal@industrydive.com.

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