Generation Z faces significant barriers to homeownership, with about 1 in 5 Gen Zers citing the lack of affordable starter homes as a major obstacle. In response to this challenge, many Gen Zers are turning to fixer-upper homes as a potential solution. These homes, which require varying degrees of maintenance work and are typically offered at a lower purchase price, have become increasingly popular among young buyers. According to a report by Clever Real Estate, more than half of Gen Zers surveyed expressed a willingness to put an offer on a fixer-upper. However, it’s important to note that some of those who have purchased fixer-uppers are already experiencing regret, with about 27% of Gen Z homeowners expressing dissatisfaction with their decision. This highlights the need for careful consideration and planning when it comes to buying a fixer-upper home.
While fixer-upper homes may offer short-term savings compared to move-in ready homes, buyers need to be aware of the potential pitfalls and challenges associated with renovating these properties. Many first-time buyers may underestimate the true costs of homeownership, including renovation and repair expenses. Experts caution that buyers need to consider not only the purchase price of the home but also the projected renovation costs and the home’s current functionality. It’s essential to prioritize functionality above all else, ensuring that any repairs or upgrades are manageable and within budget. Additionally, buyers should be prepared for unexpected repairs and renovations that may arise during the process of fixing up a home.
Risks and Compromises
Buying a fixer-upper home comes with its fair share of risks, as some Gen Z buyers are willing to take on properties with significant disrepairs or outdated features. For example, over half of Gen Zers surveyed said they would buy a home with asbestos, a hazardous material that can pose health risks. When considering a fixer-upper, it’s crucial to ensure that the home is safe and livable, without any potential health or safety issues. Buyers should also be aware of the age and condition of the home, as many existing homes in the U.S. were built decades ago. It’s important to strike a balance between affordability and quality, making informed decisions based on the condition of the property and potential renovation costs.
Before diving into a fixer-upper project, buyers should be prepared to ask thorough questions and conduct thorough inspections of the property. Key areas to focus on include the roof, plumbing, electricity, walls and stairs, and the overall land the home is built on. These elements can significantly impact the safety, functionality, and overall condition of the home. Understanding the potential costs and challenges of renovating these areas is essential for making informed decisions about purchasing a fixer-upper. By taking a strategic and cautious approach, Gen Z buyers can navigate the complexities of buying a fixer-upper home and turn it into a rewarding investment in the long run.