Is Buying a Fixer Upper in Sacramento Worth It?

In the Sacramento area where many homes in higher-priced neighborhoods are out-of-budget for homebuyers, the question of putting in an offer on a turnkey home or a fixer-upper is a big one. Recent data shows that project homes in the Golden State can cost as much as 30% less. But besides a lower entry point, what else should you consider when thinking about buying a home that needs work? 


While the charm of transforming a fixer-upper into a dream home has been popularized by numerous home renovation shows—thank you, Chip & Joanna Gaines—it’s crucial to understand what you’ll be getting to before embarking on your fixer-upper journey. 


Continue reading for our take on the most expensive repairs, the significance of "good bones," and realistic expectations regarding budget, time, and future plans.

WHY YOUR FIXER NEEDS "GOOD BONES"

 

When experts say a house has "good bones," they're referring to it having a solid foundation, structural integrity, a functional layout, and the absence of major issues that can be costly or difficult to fix. While a home that needs “a little work” may save money, a home with major issues can cost you more in the long run. A home inspection is crucial if you are purchasing a home built 20+ years ago, getting a foundation inspection may be a good idea as well. A home with good bones will give you a strong base for whatever renovations you plan to make. 


CONSIDER THE MOST EXPENSIVE REPAIRS


Certain repairs can dramatically increase the cost of renovating a fixer-upper. These typically include foundation repairs, roof replacement, electrical system overhauls, plumbing updates, and addressing any mold or water damage. Before making an offer on a fixer-upper, in addition to getting a thorough inspection, it's recommended you ask your real estate agent to reach out to local contractors to get estimates of repair and renovation costs.

EXPECT THE UNEXPECTED


Renovating a fixer-upper often comes with surprises, which is why it's important to expect the unexpected. Setting aside a contingency fund (usually 10-20% of your renovation budget) can help manage unforeseen expenses without derailing your project. The average renovation costs for major overhauls can vary widely depending on location, the home's condition, and the extent of the renovations planned. In California, the average cost of renovating a home ranged from $11K to $88K.


PLANNING YOUR RENOVATION


The scope of your renovations will significantly depend on how long you plan to live in the home, your budget, and your timeline. For those planning to make it their forever home, investing in more extensive, high-quality renovations might make sense. However, if you're fixing up the home to sell in the near future, focusing on updates that increase property value and appeal to a broad audience might be more strategic. 


While fixer-uppers offer the potential for a customized home at a potentially lower initial price point, they also require careful planning, a realistic budget, and a good understanding of what you're getting into.


If you're questioning if buying a fixer-upper is worth it in the Sacramento area, make sure to do your homework, and don't hesitate to reach out to The Sherri Patterson Team for local contractor recommendations. With the right approach and guidance, transforming a fixer-upper into your perfect home can be a rewarding experience.

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