8 Smart Remodeling Tips for First-Time Homebuyers
Should You Renovate? 8 Essential Remodeling Tips for First-Time Homebuyers
If you’re entering the housing market, you may find that some of the best opportunities come in the form of fixer-uppers. Whether you’re looking to save money or put your personal touch on a home, buying a house that needs renovations can be a great option—if you go in with a plan. Here are eight key remodeling tips every first-time homebuyer should know before tackling a renovation.
1. Explore Your Mortgage Options
Before you start dreaming of upgrades, make sure you have a financing plan. The good news? Several mortgage options include funds for renovations:
FHA 203(k) Loan: A great option for buyers with lower credit scores, this loan allows you to bundle renovation costs into your mortgage.
VA Renovation Loan: Available for eligible veterans and active military members, this loan covers home purchases and renovations through VA-approved contractors.
HomeStyle Loan (Fannie Mae): A flexible option that covers most improvements, including luxury upgrades like pools or landscaping.
CHOICERenovation Loan (Freddie Mac): Designed for disaster-resistant home improvements and general upgrades, with the option to DIY certain projects for down payment credit.
2. Focus on Efficiency Over Size
Bigger isn’t always better. Instead of adding square footage, look for ways to improve functionality. Knocking down walls for an open floor plan, adding built-in storage, or optimizing existing space can make a major impact without a massive price tag.
3. Brighten Up Without Breaking the Bank
Natural light makes any space feel larger and more inviting, but installing new windows can be pricey. Consider alternatives like light tubes, mirrors, or skylights to bring in more sunlight without the high cost of window installations.
4. Be Ready to Get Hands-On
If you’re buying a fixer-upper, expect to roll up your sleeves. Even if you hire contractors for major work, small DIY projects like painting, installing hardware, or simple repairs can save you thousands. But if DIY isn’t your thing, factor in labor costs when budgeting.
5. Plan for Two Inspections
A fixer-upper often comes with surprises. After your initial home inspection, negotiate any necessary repairs with the seller. Then, schedule a second inspection before closing to confirm the work was done correctly. Many inspectors offer discounted follow-up visits, and this extra step can save you from unexpected issues later.
6. Prioritize Projects Wisely
Don’t try to renovate everything at once. Focus on high-impact areas like kitchens and bathrooms first—these will improve your daily living and add the most value to your home. Make a list of priorities and tackle one project at a time to keep things manageable.
7. Budget Beyond the Estimate
Renovations almost always cost more than expected. Contractors' quotes can change, materials can run out, and unexpected repairs can pop up. Experts recommend adding at least 5-10% to your renovation budget to cover surprises. Before making an offer on a home, account for both the purchase price and estimated renovation costs to ensure you stay within budget.
8. Research Before You Buy
When it’s time to furnish your home, don’t rush. Read reviews before purchasing appliances, furniture, or materials. Investing in quality now can save you from costly replacements down the road.
Bottom Line
Buying a fixer-upper is an exciting opportunity, but it requires smart planning. By understanding your financing options, prioritizing renovations, and preparing for the unexpected, you can turn any house into your dream home.
Thinking about buying a home that needs some updates? Let’s chat about your options and create a plan to make it work for you!