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With summer starting, many homebuyers are eyeing the warmer months as the perfect time to dive into the real estate market. For those willing to take on a challenge, buying a fixer-upper can be a rewarding — and financially savvy — move. But before you sign on the dotted line, it's essential to understand what you're getting into. A fixer-upper can offer value, customization potential, and a chance to build equity, but it also comes with unique risks and responsibilities.

Here's what you need to know before buying a fixer-upper this summer:

1. Know Your Budget — Then Add a Buffer

It's easy to get lured in by a low listing price, but the purchase price is just the beginning. Renovation costs can quickly balloon, especially if you're dealing with older homes where surprises often lurk behind the walls. Understand that structural issues, outdated wiring, plumbing problems, or even asbestos could add thousands — sometimes even tens of thousands — to your bill. Experts recommend setting aside at least 10–20% above your estimated renovation costs to cover unexpected expenses. 

2. Summer's a Double-Edged Sword

Summer is ideal for exterior work like roofing, painting, landscaping, or foundation repairs. Longer daylight hours and favorable weather help contractors stay on schedule. However, the demand for tradespeople also spikes in the summer, which can lead to higher costs and longer wait times. So if you're planning to start work immediately after purchase, line up your contractors early and lock in prices if possible.

3. Inspect, Inspect, Inspect

Be sure to invest in a thorough home inspection by a qualified professional, and consider specialty inspections (like mold, pests, or HVAC systems) if the home is older. The inspection report not only informs you of issues with the home, but it can also give you negotiating power when it comes to price and provide you with a better estimate of how much you'll need to budget for repairs.

4. Location Still Matters

Even if you're getting a great deal on the home itself, the old adage "location, location, location" still holds true. A beautifully renovated home in a declining neighborhood may not gain the equity you're hoping for. Look for fixer-uppers in areas with good schools, walkability, future development plans, and solid resale potential.

4. Know the Permitting Process

Renovations — especially structural changes or major systems upgrades — often require permits. Permitting timelines and requirements vary widely by municipality, so do your homework early. Unpermitted work can delay your renovation, cost you fines, or create headaches when it's time to sell.

5. DIY vs. Pro: Be Realistic

It's tempting to think you can handle much of the work yourself to save money, but be honest about your skills and time. Certain tasks, like electrical work, plumbing, and structural changes, should always be left to professionals. Overestimating your ability can lead to costly mistakes.

Buying a fixer-upper can be a great opportunity if you plan wisely. Do your research, prepare for surprises, and surround yourself with the right professionals. With patience and a solid plan, that run-down house could become the home of your dreams.

For more great tips or to start your buying journey, contact Stacy Moriva, Realtor with Leader Real Estate Group, Inc. and licensed in Minnesota and Wisconsin!