The dream of owning a home is becoming increasingly challenging for Gen Zers, with about 22% citing the lack of affordable starter homes as a major barrier. In response to this, some are considering fixer-upper homes as a potential solution to this issue. A fixer-upper is typically an existing house that requires varying degrees of maintenance work and is offered at a lower purchase price. Surprisingly, more than half, or 57%, of Gen Zers are open to putting an offer in on a fixer-upper property despite the potential challenges.
While buying a fixer-upper home may seem like a cost-effective option, many Gen Z homeowners who took this route are already expressing regrets. According to a report, about 27% of Gen Z homeowners who purchased a fixer-upper have admitted to regretting their decision. The allure of short-term savings can quickly fade away when the true costs of renovations and repairs start to add up. Many first-time buyers find themselves overwhelmed by the unexpected expenses associated with fixer-upper homes.
The initial attraction of buying a fixer-upper home lies in the short-term savings it offers. The median cost of a fixer-upper house is significantly lower, around $283,000, compared to move-in ready homes, saving buyers roughly $117,000. However, potential buyers need to weigh the long-term renovation costs and the functionality of the home before making a decision. Ensuring that the home is safe and functional should be a top priority to avoid any health and safety issues down the line.
Some Gen Z buyers are even willing to take on fixer-uppers with significant disrepairs or outdated features that pose great risks. For instance, over half, or 56%, of Gen Zers surveyed stated they would consider buying a home with asbestos, a known health hazard. When purchasing a fixer-upper property, it is crucial to conduct thorough inspections to identify any potential risks and ensure that the property is safe and livable. Many existing homes in the U.S. are decades old, and buyers need to make compromises based on the age and condition of the property.
If you are contemplating purchasing a fixer-upper, there are key factors to consider before making a decision:
– **Roof:** Evaluate the condition of the roof and potential repair costs, as leaky roofs can result in significant damage.
– **Plumbing:** Check the home’s pipes and plumbing system for any issues, especially if they are old and prone to breaking.
– **Electricity:** Assess the wiring and electrical system to ensure it is up to code and can handle your needs.
– **Walls and Stairs:** Look for structural issues like cracks, uneven floors, and unsafe stairs that may indicate underlying problems.
– **Overall Land:** Consider the surrounding land and potential risks such as flooding or foundation issues that may impact the home.
While fixer-upper homes offer an attractive opportunity for cost savings, potential buyers need to carefully assess the risks and long-term expenses associated with renovating and repairing these properties. Functionality, safety, and thorough inspections are essential when considering purchasing a fixer-upper to avoid costly surprises and regrets in the future.
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