Expert Tips for Buying a Fixer-Upper in Boston

The charm and potential of a fixer-upper home in Boston can be a valuable option for many homebuyers. 

They can be a profitable real estate investment and give you the opportunity to tailor a house to  your specific needs. But, fixer-uppers can often come with a unique set of challenges depending on the housing market. 

These homes often require meticulous budgeting, extensive research, and a sound understanding of the Boston real estate market. Though the price tags can be enticing compared to move-in ready homes, it’s essential to do the necessary preparation to make sure you make an informed purchase.

Below, the team from Prevu Real Estate will guide you through essential tips you should use when buying a fixer-upper in Boston.

Tips for buying a fixer-upper in Boston

• Get pre-approved for a mortgage
• Determine your budget
• Work with a buyer’s agent
• Leverage commission rebates to save money
• Evaluate the pros and cons 

Get pre-approved for a mortgage

Securing a mortgage pre-approval is essential for most potential home buyers, whether they’re shopping for an older home that needs a gut renovation or a brand-new condo in South Boston Waterfront. 

A pre-approval letter can be essential in making your offer stand out because it demonstrates to sellers that you're a serious buyer with the financial backing to close the deal. 

Having a lender examine your finances and determine how much they will lend you can also give you a clearer picture of your borrowing capacity. This can help you plan an effective budget for your fixer-upper project.

Determine your budget

Your budget should encompass not just the purchase price of the house but also the estimated costs of home improvements and a contingency fund for unexpected expenses.

For instance, if you're considering buying and renovating a historic brownstone in the Beacon Hill area, remember that these properties often require extensive and potentially expensive restorations due to their age and historic status. 

Unforeseen challenges such as outdated wiring, old plumbing, or structural issues can sometimes appear once renovations begin, so having a buffer in your budget is essential to prepare for any surprises.

Don’t forget that you will also have to account for closing costs. As you start preparing your budget, set aside a specific amount to help you cover this common expense. It’s also a good idea to work with an experienced real estate agent, as they can guide you through the preparation process and even help you save money when you buy.

Work with a buyer’s agent

A seasoned agent will have an intimate understanding of Boston's diverse neighborhoods and can help identify properties that align with your needs and budget.

An agent's local knowledge and network can also provide invaluable insight into labor costs that come with renovating a fixer-upper, local permitting processes, and reliable contractors in the area. For instance, they can guide you toward areas that match your renovation budget and alert you to areas with stricter building and renovation codes.

A buyer agent can also provide a tool to make your home purchase in Boston more affordable: a commission rebate.

Leverage commission rebates to save money

Affordability is one of the most common challenges in most homebuyers’ journeys. Commission rebates help make this more manageable.

Simply put, commission rebates are a portion of your buyer broker’s commission fee returned as savings once you close on a home. Modern brokerages like Prevu Real Estate prioritize a streamlined online homebuying platform and salaried agents to unlock commission rebates for Boston buyers.

Buyers who work with a dedicated Prevu agent can use the platform to explore potential fixer-upper homes that match their exact criteria, communicate with their agent directly through the platform, and set up property tours with the click of a button. Each listing on the platform also gives an accurate estimate of the rebate you can expect to receive when you buy.

Prevu currently offers the largest rebate in Massachusetts, allowing buyers to receive up to 1% of the purchase price of a home via their Smart Buyer Rebate.

The extra cash can be essential in jumpstarting a budget to cover the renovation costs of your new home.

Evaluate the pros and cons

Determining the pros and cons depends greatly on every buyer’s unique situation. 

A fixer-upper can allow you to personalize your home and potentially increase its value, but it can also generate lengthy renovations, unforeseen costs, and the stress of managing a large-scale project.

Arguably, the critical factor is deciding what you want the home to be. If you’re gambling on resale value, you want to make sure you make the best renovations possible and do the necessary research. On the other, if it’s your personal project for a forever home, you can take your time with fixes and upgrades as your budget allows.

Either way, working with a buyer’s agent is crucial when evaluating a fixer-upper purchase. You have enough on your plate to worry about as you search for the right home and prepare your budget. Add to that the burden of researching the resale value and making comparative analyses can make the process even more challenging.

Don’t be afraid to leverage your agent’s knowledge and use their expertise to help research for you. Your agent can access exclusive MLS listings and data to help you narrow down the ideal Boston neighborhoods for your fixer-upper goals.

Interested in buying a home in Boston? Browse listings and see how much you can save with Prevu's Smart Buyer Rebate.