My first home taught me many, many lessons. They went viral on my (now-defunct) award-winning personal finance blog, Financial Best Life. I also draw upon the experience with my clients today! The TL:DR is this - I bought a fixer-upper at 26 (back in 2012 during the recovery after the Recession), and the purchase eventually became one of the best financial decisions I made. But getting from closing day to that happy ending involved more stress, expense, and second-guessing than it needed to.
The three mistakes below are exactly why I look beyond the list price when we evaluate a house, especially an older intown home with a renovation wish list.
If you are buying your first home in Atlanta, the short version is this: vet the people doing the work, price the actual project, and keep cash available after closing. Here’s what I wish I had known.
Mistake 1: Hiring a contractor before doing enough homework
I was 26, flying solo on this project and very inexperienced. I trusted the wrong contractor without vetting the relationship carefully enough. That lesson is easy to file under “learned the hard way,” but it is also one of the most preventable mistakes a new homeowner can make. When you’re eager to get settled, the person who says they can start next week sounds awfully appealing.
A recommendation is a starting point, not a substitute for your own checks. Before committing to substantial work, I’d ask for recent references on similar projects, confirm insurance and any credentials needed for the specific job, and get a written scope that spells out materials, responsibilities, payment milestones, and how changes will be approved. If a permit may be needed, determine who will obtain it and how the work will be inspected. Pay attention to how clearly the contractor answers questions before any money changes hands.
I also tell buyers to separate the purchase decision from the contractor decision. A house may be worth buying because its location and layout work for your life. That does not mean the first quote you receive is the right plan for improving it. When a renovation is essential to making the home livable for you, bring qualified specialists in before you commit as far as your contract allows, and get a realistic sense of feasibility and cost.
What I do differently with buyers now
If a buyer loves a house that needs work in Kirkwood, Candler Park, Oakhurst, or another intown neighborhood, we talk through the likely project before treating its “potential” as a free bonus. I can help flag questions to investigate and coordinate access during the purchase process. A licensed inspector and the appropriate contractors are the people to evaluate the condition and quote the work.
Mistake 2: Underestimating the cost and timeline of renovations
My renovation math was too optimistic. It is tempting to estimate the fun part—the cabinets, paint, or tile—and overlook the less photogenic work underneath. Older homes can be full of character, but a project may reveal issues you could not see during a showing. Even a straightforward update takes time to plan, schedule, order, complete, and sometimes redo.
A quote is only useful if you understand what it includes. Does it cover demolition, disposal, materials, labor, permits where needed, and finishing work? Who is paying if hidden damage is uncovered? Does the price include putting the room back together after a trade finishes its portion? A beautiful “before and after” photo rarely shows the full invoice—or the weeks spent waiting on a subcontractor.
- Before making an offer on a home that needs substantial work, I would sort the projects into three groups:
- Must address soon: safety concerns, active leaks, major system problems, or work required to use the home as intended.
- Would improve daily life: changes that matter to your routine but can be scheduled after move-in.
- Can wait: cosmetic projects that are appealing but do not need to happen this year.
Then price the first group using actual evaluations whenever possible. Leave room in both the budget and the calendar for surprises. If your plan depends on the renovation finishing immediately or costing exactly the first estimate, the purchase may be tighter than it looks.
This matters in Atlanta because two homes at the same asking price can have very different ownership costs. A freshly renovated house may carry a higher purchase price; a charming older house may require more cash and management after closing. The smarter choice depends on your finances, appetite for projects, and how you want to spend your weekends—not just the monthly mortgage payment.
Mistake 3: Leaving too little cash after closing
I had not built a large enough emergency fund for a major project. Buying and renovating at the same time meant that ordinary homeowner surprises felt much bigger. You can plan carefully and still have an appliance fail, discover a repair that cannot wait, or find that a project costs more than expected.
This is where my years in personal finance and my work in real estate meet. A lender can tell you what you qualify to borrow. The better question is what you can comfortably own after the down payment, closing costs, moving expenses, and the work you plan to do. I want buyers to know what their cash position will look like once they have the keys.
There is no magic emergency-fund number that fits every household. A newer condo with a healthy association budget presents a different set of costs than an older single-family house with aging systems. Your job, income stability, insurance, and planned renovations matter too. Decide on a cash reserve that lets you handle a real surprise without relying on a credit card, and ask your lender to walk through payment scenarios at different down payments if that would help preserve it.
Also look closely at the ongoing costs: property taxes based on your likely assessment rather than only the seller’s current bill, insurance, utilities, HOA dues if applicable, and routine maintenance. The house should fit the life you want to have after closing, not consume every dollar available to you.
What I still love about that first home
None of these mistakes made buying my first home a bad decision. It became one of the best financial choices I ever made. It also taught me that a good purchase can come with a hard first year, and that a home’s financial upside does not make every contractor, renovation, or cash-flow decision wise.
I understand why buyers fall for a home with good bones and a little work to do. I have been that buyer. I also know the relief of having someone ask the less glamorous questions before you sign: What has to be fixed? Who can do it? What will it actually cost? What happens if it takes longer? How much cash will be left?
Those questions do not take the joy out of buying a home. They help you enjoy it once it is yours.
Buying a home in Atlanta? Let’s make a plan that holds up after closing
I help first-time buyers, local movers, and people relocating to Atlanta make thoughtful decisions about homes across the city’s east side and beyond. We can talk through your budget, neighborhood priorities, repair concerns, and whether a house’s potential is worth the time and money it will require. I’ll help you ask the right questions and connect you with the specialists who can answer the technical ones.
If you’re considering a home in Atlanta, reach out through laurenbowlingatl.com/contact. I’d love to help you buy a place you can feel good about living in—not just winning.
Frequently asked questions
Should I buy a fixer-upper for my first home in Atlanta?
Possibly, if you have enough cash after closing, time to manage the work, and a realistic understanding of the repairs. Get a thorough inspection and qualified project estimates, then compare the total cost and disruption with homes that need less work.
How much should I budget for renovations?
Start with written estimates for the specific work, not a generic percentage of the purchase price. Make sure the estimates describe what is included and set aside additional funds for changes or hidden issues. The right contingency depends on the age and condition of the home and the scope of the project.
What should I ask a contractor before hiring them?
Ask for a detailed written scope, recent references for similar work, proof of appropriate insurance, a payment schedule, an expected timeline, and a process for change orders. Clarify permits and inspections when applicable. A qualified contractor should help you understand what remains uncertain.
