8 Tips for Buying a Fixer-Upper in Dallas

If you’ve been looking at homes for sale in Dallas, you've likely come across older homes needing a touch-up. 

Commonly known as fixer-uppers, these homes can be excellent for folks willing to take on repair projects. While a fixer-upper is not for all buyers, folks should take some time to consider if a storied house in need of some repairs is right for them. 

To give buyers an idea of whether or not they can take on the task, our team prepared the following guide on how to approach purchasing a fixer-upper in Dallas. 

Essential tips for buying a fixer-upper in Dallas

• Scope out the renovations
• Set your budget up for success 
• Work with accredited contractors 
• Understand the building codes and regulations 
• Get to know your neighborhoods 
• Consider environment-frinedly upgrades
• Work with an agent experienced in fixer-uppers
• Consider future resale value

Scope out the renovations

Taking on a fixer-upper property can become overwhelming. That's why you must take stock of your resources and skills to ensure you can handle the project. 

Start at the foundation. Settling is a common concern in Dallas and Texas, as the soil is mostly clay. A shifting foundation can lead to structural problems, such as cracks in walls and misaligned doors. You'll want a comprehensive foundation inspection completed by a qualified professional.

The roof is another problem. Roofs in Dallas are subjected to intense sun exposure, which can accelerate wear and tear. So before offering on any fixer-upper homes, evaluate the roof's condition and look for signs of damage or aging that might necessitate repairs. 

Lastly, ensure the insulation and ventilation of the home are in good condition. If there are issues with either, you could face mold problems from poor ventilation or frozen pipes in the winter.

Set your budget up for success 

If you're handy with a hammer and saw because you work in construction, then you only need to budget for materials and ensure you have enough time on your hands to handle the work. 

But if you plan on hiring an experienced contractor, you’ll want to ensure your budget is designed to handle the necessary costs. 

Plumbing repairs can vary widely, from fixing leaks to replacing the entire plumbing system, and costs can range from a few hundred to several thousand dollars, based on the extent of the issues.

An older home may need an upgrade to the electrical system to meet modern safety standards. This involves rewiring, installing new outlets, or upgrading the electrical panel. Costs for electrical renovations can vary but generally fall within the range of $1,000 to $4,000 or more, depending on the complexity of the work.

You'll want to ensure you have money put aside if the heating, ventilation, and air conditioning (HVAC) system needs addressing. Fixing this crucial system could cost you a few hundred to several thousand dollars.

Work with accredited contractors 

Even if you plan on taking on a fixer-upper independently, some projects require a helping hand.

For instance, a significant kitchen renovation involving plumbing, electrical work, and cabinetry would require the coordination of a plumber, electrician, and carpenter. Similarly, a bathroom remodel might involve a team of a plumber, a tile installer, and a general contractor overseeing the project. 

To find the right professionals for your specific job, consider seeking recommendations, checking online reviews, and conducting thorough interviews. Try to see examples of their past work so you know what to expect. 

This way, you can build relationships with a team of experts with the necessary skills to envision your dream home.

Understand the building codes and regulations 

Before you contract an architect to start plans for an addition to a fixer-upper you're considering, take the time to learn if your goals are allowed. 

Building codes in Dallas ensure that homes are safe and built according to the nature of their plots. 

There are height restrictions, rules on how to set back a home from the street, historic district guidelines, and a slew of regulations to protect the environment. 

Luckily, unless an interior renovation significantly changes the home, such as an added second story, you will not need permits to remodel a kitchen, bathroom, or bedroom. 

Get to know your neighborhoods 

Neighborhoods in Dallas have distinct characters and styles, and learning about community guidelines and homeowner association rules is crucial. 

Areas like Highland Park, known for its affluent residences, may have specific architectural standards. Preston Hollow, with its spacious estates, might favor certain design elements. 

Historical districts, like those in Lakewood or Swiss Avenue Historic District, might impose additional regulations to preserve the area's character. In Lakewood, for instance, guidelines aim to maintain the neighborhood's distinctive charm, influencing exterior modifications.

Check with specific neighborhood associations, local planning departments, or the Dallas City Hall to ensure your renovation meets local expectations. 

Consider environment-friendly upgrades

Enhancing energy efficiency in a Dallas fixer-upper is a wise ecological choice and a strategic investment. 

Dallas, known for its warm climate, prompts homeowners to prioritize upgrades that enhance energy efficiency. Installing insulated windows can significantly improve the home's insulation, reducing the reliance on heating and cooling systems. 

Modernizing the HVAC system is another critical consideration. Opting for high-efficiency units ensures your pet project home has optimal climate performance. 

There are even programs run by the City of Dallas to incentivize homebuyers and owners to switch to more ecologically friendly tools and smart home features regulating energy use. For instance, the Dallas Green Building Program offers potential rebates and incentives. 

Work with an agent experienced in fixer-uppers

While an agent might not advertise that they have helped folks buy fixer-uppers, you can certainly ask one about their experiences with older homes. 

Local buyer's agents, well-versed in the nuances of Dallas neighborhoods, help you learn about HOA rules, where the historic districts are, and other relevant regulations pertaining to your purchase. An agent will also help you craft an offer for the property and a negotiation strategy to help you get some repairs or credits from the seller. 

But a commission rebate is one of the best benefits of a real estate broker. This financial incentive, where a portion of the agent's commission is returned to the buyer, can be a valuable resource for funding the necessary improvements. It's essential to clarify the terms of commission rebates with your chosen real estate agent, ensuring a transparent and mutually beneficial partnership. 

Consider future resale value

Resale value is important unless you plan to live the rest of your life in the home you're buying. 

Renovations can enhance your living space and serve as investments that yield returns when it's time to sell. While unique touches can make a house feel like home, focusing on elements with widespread desirability ensures a more universally attractive property. 

In Dallas, features such as energy-efficient upgrades, modern kitchens, and smart home technologies are known to capture the attention of potential buyers.