The Dos and Don’ts of Buying a Fixer-Upper in Michigan

Having your eye on a fixer-upper can mean anything from dreaming of turning a charming, outdated home into your personal masterpiece or flipping it for profit. Either way, the idea of buying a fixer-upper can feel both thrilling and, of course, a little intimidating. Luckily, Michigan is full of opportunities for aspiring home renovators. But before you grab your toolkit and dive in, there are a few key things to keep in mind.

In this blog, we’ll walk you through the dos and don’ts of buying a fixer-upper so you can avoid common pitfalls, stay within your budget, and most importantly, enjoy the process.

 

The Dos of Buying a Fixer-Upper

Do Get a Thorough Inspection

A fixer-upper can hide all sorts of surprises. Some good, like original hardwood floors under that old carpet, and some… not so good, like a cracked foundation or outdated electrical wiring.

A professional inspector will help you uncover the hidden details so you know exactly what you’re getting into. In Michigan, it’s especially important to check for issues caused by our tough winters, like roof damage or leaky basements. When searching for an inspector, look for someone who’s licensed and familiar with the local housing stock.

Check reviews, ask for referrals, and don’t be afraid to ask questions. A trustworthy inspector is worth every penny.

 

Do Have a Realistic Budget

It’s easy to get caught up in the excitement of fixing up a home, but sticking to a realistic budget is key. Your budget should include the purchase price, renovation costs, and a healthy cushion for unexpected expenses (because surprises are pretty much guaranteed).

Start by getting quotes from local Michigan contractors. If you’re planning to DIY, research materials and tools to avoid any budget shocks. Michigan has some great resources for homeowners, like community workshops and renovation supply stores, that can help you stretch your dollars.

 

Do Prioritize Location

They say location is everything, and that’s doubly true for fixer-uppers. The perfect home in the wrong area? Not so perfect. A home’s value is deeply tied to its location, so consider the neighborhood carefully.

In Michigan, think about what’s important to you: Are you looking for lakefront views? A top-rated school district? Proximity to urban amenities? Even if you’re not planning to stay in the home long-term, these factors will impact resale value.

Take the time to explore the neighborhood at different times of day to get a real feel for the area.

 

Do Work with an Experienced Realtor

An experienced realtor can be your guide, especially one who knows Michigan’s real estate market inside and out. They’ll help you identify properties with real potential and steer you clear of those that could turn into money pits.

Look for a realtor who specializes in fixer-uppers or has connections with contractors and inspectors. It’s also a bonus if they’re familiar with local renovation loans or grants—you never know what kind of opportunities they can uncover for you.

 

Do Check Local Building Codes and Permits

Michigan’s building codes and permit requirements can vary depending on the county, city, or even the neighborhood. Ignoring them can lead to fines or costly do-overs, so it’s worth the extra effort to do things by the book.

Start by checking with your local building department to see what’s required for your project. They can provide guidance on permits for renovations, additions, and even smaller updates.

 

The Don’ts of Buying a Fixer-Upper

Don’t Underestimate Renovation Costs

In Michigan, you’ll need to consider challenges unique to the region, like damage from harsh winters, outdated plumbing in older homes, or the cost of energy-efficient upgrades to combat fluctuating weather.

Even small projects can come with hidden expenses. For example, replacing old carpet might reveal subfloor issues, or a simple bathroom update could turn into a full plumbing overhaul.

To avoid financial surprises, always overestimate your renovation budget and include a 10-20% cushion for unexpected costs.

 

Don’t Skip the Contingency Plan

Including a contingency plan in your real estate contract is non-negotiable. This clause gives you the option to back out of the deal if serious issues like structural damage or zoning problems are discovered during the inspection process.

Michigan fixer-uppers can come with quirks, especially older properties, so safeguarding your investment is key.

Work with your realtor to ensure your contract includes the right contingencies to protect your time, money, and peace of mind.

 

Don’t Rush Your Decision

In Michigan’s competitive housing market, it can feel like you need to make a quick offer or risk losing the property. But rushing into a fixer-upper is a recipe for regret.

Take your time to do thorough research, weigh the pros and cons, and envision the full scope of the project.

 

Don’t Overlook the Resale Value

Even if you’re planning to live in the home for years, it’s important to think about its future resale value. Pay attention to regional housing trends and consider how your updates will appeal to future buyers.

For instance, modernizing a kitchen or adding energy-efficient windows can significantly boost your return on investment.

Renovate with care, keeping an eye on what will make your home stand out in the Michigan market.

 

Additional Tips for Michigan Fixer-Upper Buyers

Explore Michigan State Housing Development Authority (MSHDA) Programs

The Michigan State Housing Development Authority (MSHDA) offers a variety of programs to help homebuyers and renovators. Their renovation loans can provide the financial boost you need to tackle those big projects. These loans are designed to make home improvements more accessible, helping you turn your fixer-upper into a functional, comfortable, and beautiful space.

 

Take Advantage of Historic Preservation Tax Credits

Michigan is home to many historic neighborhoods, and if your fixer-upper falls into this category, you might be eligible for Historic Preservation Tax Credits. These credits can offset some of the costs of restoring older homes, especially if you’re committed to maintaining their original charm.

 

Prepare for Michigan’s Seasonal Challenges

Winter-proofing is a must for Michigan properties. Insulate windows, check the roof for leaks, and make sure the heating system is up to par. These improvements not only make your home more livable but also protect it from long-term damage.

Additionally, consider how Michigan’s snowy winters and rainy springs might impact your renovation timeline. Some projects, like roof repairs or exterior painting, are better suited for the warmer months.

 

Choose the Best Real Estate Agent in the UP — Build Your Fixer-Upper Future with Team Erin Wasik

Looking for homes for sale in Marquette, MI? Buying a fixer-upper in Michigan is an exciting journey filled with opportunities to create your dream home or make a smart investment. With the right preparation, a clear vision, and a little patience, you can turn a diamond in the rough into a shining success.

Make this dream a reality by contacting Team Erin Wasik. Whether you’re looking for the perfect property or need advice on navigating the buying process, we are here to help every step of the way. Let’s make it happen together!