by Heather Cone

Created on: April 30, 2009   Last Updated: May 01, 2009

So you have decided it's time to move. Buying a home is both a very exciting and stressful experience. Choosing the right location, the right floor plan and of course staying with in your budget are all limiting factors. Add to that the the daunting task of having to make major renovations to your new home and the process can seem more like a nightmare. So what are the pro's and con's of buying a fixer upper?

Let's start first with a look at the pro's.

Location
The common real estate mantra, "Location, Location, Location" is not with out merit. Choosing the ideal spot for your new residence is a critical decision. Is it close enough to work, is it in a good school district, is it near a major highway? These are all factors that can sometimes price you out of a dream location. Choosing a fixer upper in a good area, can get you in the right location for the right price.

Choice After you have purchased your new fixer upper it is up to you to decide how to recondition it. You get to choose the new flooring, the new lighting fixtures and the new appliances, guilt free.

Floor plan
The natural flow of a home is something that is both very expensive and difficult to change. Finding the perfect floor plan can be tricky as different families have different needs. When you do stumble on a home with the right bones, you certainly do not want to pass it up simply due to cosmetics. Fixer uppers often offer the bones you are looking for with a reduced up front cost.

Cost This is probably the most important aspect of buying a home. Does it fit within your budget. Fixer uppers often have a significantly reduced sticker price and generally you have a little more wiggle room when it comes time to negotiate. And who doesn't like a good deal?

But is it really a good deal? Let's move on to the con's.

Condition
Sometimes a fixer upper can appear to only have cosmetic defects. But often those defects run deeper than just the surface and you could end up with a list of major structural repairs. This is where your home inspector becomes invaluable. Be careful that if you are not a professional contractor that you don't end up needing one.

Stress Who ever said home re-modeling was easy? Chances are you will have workers running in and out of your house all day until the remodel is complete. You might even have to go with out some basic household items for a period of time. You must honestly ask yourself if this something you can handle before you sign on the dotted line.

Money
Sure, you saved on the upfront cost of the house, but do you have the money to put into the repairs? If you have maxed out your budget with the mortgage alone then you will have a hard time to replace that carpet or pay for your granite counter top. Even if you thought you had a budget for the repairs, keep in mind that it is more common to go over budget than to stay under.

Before deciding to take on a project of this magnitude be sure to include everyone in the equation. Do you have kids? How will their daily lives be disrupted? Do you have time? Can you do any of the work yourself? While evaluating the pro's con's these are questions you will need to answer.

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