If there’s one thing we’re pretty familiar with at NewlyWoodwards, it’s buying a home. We’ve done it five times since 2007, so I’m considering ourselves at least somewhat knowledgable about the process.
That doesn’t mean we LIKE the process. It’s terrible, tedious, stressful, time-consuming and just horrible overall, in my opinion.
But buying a house is worth all the bad parts. Why? Because there’s nothing like the feeling of getting those keys. Your keys. To an entire house that is all yours. It’s just an amazing feeling.
But when we signed our lives away on our first home in 2007, we were not knowledgable at all. And there’s something about buying something so expensive that made us a little overwhelmed and scared.
Did you know that we put an offer on our first house before Ryan had seen the inside? He was working so I went to see it without him. It smelled horrible. It needed completely redone. Did I mention that it smelled horrible? Oh my goodness, it smelled so bad.
In other words, it was perfect.
We had been on the hunt for a fixer-upper and this was the ugliest house in a great neighborhood. We had actually lost a few houses in our hunt and I wanted this house. Once I shared the details with Ryan, he was all in. We made an offer and the rest is history.
I don’t recommend doing this, by the way. But it did work for us.
We knew that we would be bleeding money on this house for nearly a year while we renovated. So we bought a bank-foreclosed property that was way under the market value of homes in the neighborhood. And we paid cash for every single thing we did on that house over the next year. (We also did the same thing for our three rental properties and our second home.)
Here are a few things we learned about saving money when buying your first (fixer-upper) home.
Have a plan.
When we buy a home, we have a pretty good idea of what it’s going to cost to renovate. We write down a massive list of everything we think will need done and then we add about 20 percent because everything is going to go over budget. That gives us a starter plan for the renovation.
If you don’t know what things cost, you can figure it out by contacting a local contractor or searching costs online. Or go to your local home improvement store and make friends. In my opinion, you should never buy a house before knowing exactly what it’s going to cost to make you happy to live there.
Prioritize.
The houses we’ve bought were not liveable, but most people aren’t so crazy. Ask yourself what MUST be done before you move in? What would be NICE to be done before you move in? What can you WAIT to save for?
In my opinion, running water and electricity is a MUST. 😉 We have found that painting and flooring are something that are much easier to do before moving in. Not a MUST, but a NICE. So, we typically do those before moving.
There are also projects that are a NOT or a WAIT. Sometimes, things just don’t fit into the budget. We moved into our first house before the upstairs had even been touched. We lived on the main floor for eight months while we worked on the upstairs and saved. In our current home, we planned to add a half-bath on the main floor but that never came to fruition because of budget.
Be reasonable.
It’s really, really easy to get emotional about your home. You will want to recreate the cover of House Beautiful. I get it, you want everything to be perfect. But think about what actually matters to you and what is really noticeable.
Light fixtures and high-end anything (read: appliances, finishes, hardware) do not matter to me. But floors are something that matter to me. So, I may spend a little more on flooring and go with budget in other areas (like appliances and countertops).
And you know what, I never notice those reasonable compromises. And you won’t either if you are honest about what really matters to you. (And, by God, if you are like the people on House Hunters who insist that THEY MUST HAVE GRANITE, I may have to smack you.)
What’s your biggest advice to something buying their first home?
Related posts:
Managing your finances as a couple
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3 secrets to afford home projects (while achieving financial freedom) |
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Noornabi867 says
Hi guys,you have mention some of good article post on the site.however i agree with your requirement because we same company ok
Angie says
This is a great article. Thanks for sharing your expertise. And I laughed out loud at the last sentence- I’d like to smack some of those people with you! Lol! 🙂
Kim Woodward says
I often feel violent while watching House Hunters. 😉
Tamara says
Kim I swear you wrote this directly to me. My husband and I are in the option period of purchasing a home that needs some love and this is so encouraging. We are also newlyweds. Thank you for your words of wisdom 🙂
Kim Woodward says
Thank you so much for the kind words – it really means a lot. It’s a stressful time, but all of it is worth it!
claire says
i have always loved all of your reno posts – so inspiring! and like i always comment – you people are super-human!
Kim Woodward says
Ha. NOt superhuman at all. Just normal human.
Ally says
Yes! Those granite mongers on house hunters drive me nuts!
Kim Woodward says
Seriously? It’s like someone brainwashed all these people to think a kitchen is not worth without granite.
Katja @ Shift Ctrl Art says
Like Cassie says location is so important. It seems like you chose very well by getting the ugly house in the good neighborhood.
Once you see past any colorful trim and even smells you realize that you can have a real gem on your hands with a fixer-upper…
daisy says
Great advice! Y’all are such accomplished home owners, and SO young to boot!
I’d love to buy an old barn to convert into a house, but I don’t think Big K will go for that. He wants it all done already. I guess I’ll have to live vicariously through the Newly Woodwards. ;0D
cassie says
my advice is always the same- location location location! it could be the most beautiful and affordable and perfect for you house, but in the wrong place. and you can’t change that! BUT you can find a so so house in the perfect place and make it the most beautiful house!
Kim Woodward says
Yep – great advice.
K Frer says
I love hearing about your home owning process. It’s crazy to me to think that we’re about the same age, and you’re a landlord of more that one house! It’s something I think I’d like to take on in the next few years as we straighten out the last of our debt, and I know my husband has wanted to for more than a few years!
Kim Woodward says
Best of luck with your journey to income properties.