Can Fixer-Uppers Work for First-Timers?

My Next Move: Since My Divorce
My Next Move: Since My Divorce

Video Transcript for Hearing Impaired

Buying a first home is a complex process. Fortunately, in today's market there are ways to find a home that you can comfortably afford.

One common way that buyers often find a good value is by buying a fixer-upper, which is basically an existing home that needs some work.Sometimes these dwellings could just use some tender loving care, like a putting on a fresh coat of paint and installing new flooring. Other times, though, they need more serious rehabilitation.

Depending on the condition of a home, a seller tends to price the property at a lower price compared to other homes in the local neighborhood, which can allow a potential buyer to save money on the price of the home right off the bat.

So the question is: Are fixer-uppers a good idea for someone who's new to homebuying and homeownership?