A fixer-upper can be the best way to get into a great neighborhood or build exactly the home you want. It can also become an expensive surprise. Because I run a renovation business as well as selling real estate, I look at these homes in two ways: what it could become, and what it will really take. Here's my checklist.
Separate Cosmetic From Structural
Cosmetic issues include paint, flooring, light fixtures, dated cabinets and countertops. They're predictable to price and easy to phase over time. Structural and system issues include foundation, roof, plumbing, electrical and HVAC. Those are where budgets break. A home with ugly finishes and solid systems is often a better buy than a freshly flipped home with problems behind the walls.
The Big Five to Inspect
1. Foundation
Much of North Texas sits on expansive clay soil that swells when wet and shrinks when dry, so foundation movement is common. Look for diagonal cracks above doors and windows, doors that stick, sloping floors and gaps at trim. If the inspector notes movement, hire a structural engineer, not just a foundation repair company, for an independent opinion during your option period.
2. Roof
Hail is a regular event in DFW. Ask about the roof's age and any past insurance claims, and have it evaluated. An older roof can also affect your insurance cost.
3. Plumbing and Sewer
Older homes may have cast iron drain lines or galvanized supply lines. A sewer camera inspection is inexpensive and can reveal cracked or root-damaged lines before you commit.
4. Electrical
Watch for outdated panels, ungrounded outlets and older wiring. Updating electrical is often needed for a modern kitchen anyway, so factor it in.
5. HVAC
Texas summers are hard on air conditioning systems. Ask for the age of the system and its service history.
Check the Paperwork
- Permits. Ask whether past additions, garage conversions or remodels were permitted. Unpermitted work can complicate insurance and resale.
- Historic districts and HOAs. Many older Fort Worth and Dallas neighborhoods have historic or conservation district rules for exterior changes. Newer suburbs often have HOA design requirements.
- Survey and easements. Easements and setbacks limit where you can build an addition, pool or garage.
- Seller's disclosure. Read the Seller's Disclosure Notice carefully for past repairs, flooding or foundation work.
Budget Like a Renovator
- Get estimates during the option period for the biggest projects.
- Add a contingency of 15% to 20% for surprises, more for older homes.
- Decide what has to happen before move-in, like floors, paint and electrical, and what can wait.
- Keep cash available after closing for the first phase of work.
Look for Good Bones
The best fixer-uppers have a solid layout, good natural light, a desirable location and a sound structure. Those are the things you can't easily change. If a house has them, almost everything else can be fixed.
Touring a home that needs work? Send it to me, and I'll give you a designer's read on what it could become. For the rest of the process, see the DFW home-buying guide.
Frequently Asked Questions
Are foundation problems common in DFW?
Foundation movement is common in North Texas because many areas have expansive clay soils that swell when wet and shrink when dry. Many homes have some movement. A structural engineer can tell you whether it needs repair.
Can I get a loan for a fixer-upper?
Yes. Options include conventional loans for homes in livable condition and renovation loans that include repair costs in the mortgage. Talk to a lender early, because some homes in poor condition may not qualify for standard financing.