Cons: Prepare to go over budget.
In fact, you may want to plan to go over budget – 4 out of 10 fixer uppers do. What's even more startling? Only 1 in 5 come in under their budget. Most experts suggest adding 10-25% to your remodel budget for unplanned, surprise costs.
To ensure a fixer-upper house is well worth the money, look at comparable homes (known in real estate as comps) in the neighborhood. Then add your estimated cost of renovations to the purchase price. If you're making money on the home, it's probably a good investment.
Unless you're planning to completely tear down the home, it's important to assess whether or not the fixer upper has good bones. This means everything from the construction materials and roof condition to the floors, HVAC and electrical systems.
You should think twice if the house has termite damage, water damage, needs serious upgrades to the electrical systems, or if there is a mold manifestation. If you find problems like these after a home inspection, experts say it's probably best to walk away.
Surprisingly, the answer is no. The couple (or person) is responsible for paying for their own renovations, but that doesn't mean they walk away totally empty handed. While HGTV doesn't fund the renovations, they do pay for one big ticket item.
8) You get one free piece of furniture. When the show aired on HGTV, the furniture and decor used for the big reveal was staged. However, the network always gave the homeowner one big ticket item to keep at the end, ranging from a sectional to a dining room table. 9) The rest of the furniture is available for purchase.
"Most of the time when it's the reveal, people wonder, 'What about the other bedrooms?'' Joanna said. "Well, this is one of the bedrooms, and it's finished […] except all of my stuff is in here." It turns out that two or three rooms you don't see in an episode of Fixer Upper are storage rooms.
Here's why the Fixer Upper stars have been sued in the past and what we know about their most recent legal case. In 2016, Chip and Joanna Gaines' neighbor at the Magnolia Market sued the Fixer Upper stars for $1 million over the property surrounding the market in Waco, Texas (per Country Living).
Fixer-uppers cost less per square foot than move-in ready homes. That lower price tag means both your down payment and your monthly mortgage payment are lower. It makes it easier to afford a home, or to get a bigger house than your budget would allow otherwise. Lower Taxes.
When Fixer Upper aired on HGTV, each couple was gifted one big ticket item following the renovation. Although the homeowners were responsible for paying for their own demolition, the network covered the cost of one piece, which could have included anything from a dining room table to a large sectional couch.
Yes, the numbers are pretty different than in the real world. It's no secret to most viewers that the renovation estimates on flip shows like Fixer Upper are almost always lower than what those quotes would be in the real world.
HGTV does not fund the renovations, but they do cover the cost of one bonus item and pay a talent fee to Chip & Joanna. If you thought that renovation budget seemed impossible for everything Chip and Joanna accomplished, that's because the buyers are basically getting the renovations done at a cost.
Clint Harp Owned Fixer Upper's First-Season Masterpiece
A handful of homeowners who appeared on Fixer Upper have sold their properties, but it doesn't seem that they are in a rush to do so. Case in point? Clint Harp from season one.
That's pretty accurate, according to News & Record. An HGTV rep reportedly told the website: “The homeowners always pay for the renovation and they are given the opportunity to purchase the furnishings and décor used for the staging. What they don't purchase is removed from the home." So there you have it!
"HGTV pays for some labor or costs to expedite production if needed, but generally, homeowners are paying for their services. And, they may have access to discounted services or goods." So a new kitchen island that costs $1,000 might actually cost $3,000 if the homeowners weren't being featured on a TV show.
Well, it turns out it'll cost you a pretty penny. According to TheCheatSheet.com, contestants must be willing to drop a minimum of $30,000 on renovations in order to have the wonders of Waco, Chip and Joanna Gaines, show up on your doorstep ready for a full demolition.
Chip and Joanna reportedly made an average of $30,000 per renovation on Fixer Upper, plus an undisclosed fee from HGTV. With 79 episodes under their belt in the show's first five seasons, Chip and Joanna made at least $2.37 million just from televised renovations alone.
Some were displaced for over a month.
Sure, Fixer Upper operated on a reality TV schedule, but flipping a house was still a massive undertaking. Some renovations took up to six weeks to complete, which is considered speedy for a standard contractor.
But here's the kicker: More often than not, the homes are staged, meaning the homeowners don't get to keep the furniture and decor that's shown on TV. “Most if not all of our flipping shows are staged,” Betsy admits, noting that, depending on the client, sometimes the renovation will include some of the furniture.
“The inside and outside are both important but the exterior presentation does create a first impression. It can be the difference between a potential buyer entering a property for a look or driving straight past,” she said. “But once they are inside, the interior presentation is just as important.”