Anne Winch Ottawa Real Estate and Staging Team Answers Your Question On:
“Should I purchase a fixer-upper?”
Many online shows now regale on the virtues of buying a fixer-upper for yourself or to flip. However, you may be wondering about the pros and cons of such a venture. It all looks so simple on tv when you find an older run-down home and with a few touches you can restore it to its former glory. We have profiled a few interesting facts that may make your decision a little easier on whether this adventure is one for you or not.
What is your budget?
The first rule of thumb is to crunch some numbers. What can you afford? This may seem like a logical first point of attack but often we fall in love with a picturesque older home and forget the numbers game involved. Remember you always have to keep in mind the resale value of the home even if you don’t plan to sell right away. Get some advice from your real estate broker about the purchase of a fixer upper especially if you need financing.
Your ideal fixer-upper
Does the home have ‘good bones’? Sometimes you can find a home that just needs some TLC. Often buyers can’t see past peeling paint, worn carpets or older fixtures. These are all easily correctable and fairly easy to repair. Make sure the structure is sound or as we say in the industry it has “good bones”. Remember some of the more expensive repairs are: kitchen and bathroom remodels, windows throughout the house or replacing electrical and plumbing. Just keep in mind some repairs are easier and less expensive and some can end up costing you a lot more.
Location and layout
Where your fixer-upper is located is just as important and often more so than any repairs you may do. You want to have a fixer upper that is in a good neighbourhood. Just make sure your repairs do not overprice your home for the neighbourhood you are in. You want your resale value to be approximately the same as the homes around you. Check the layout of the home. Do you have to remove a lot of walls to create some space and openness? The layout should flow in the home. Also, try to find a home with 3 to 4 bedrooms and at least 2 bathrooms.
Heritage home
Who can’t fall in love with a century home of grey stone or yellow brick with a beautiful wraparound porch? Just be aware of the difference between an older century home and one that is deemed a heritage home. A heritage home can be protected by federal, provincial or municipal designation. Often what this means is that there is a committee usually at the municipal level that has to agree to any repairs done to a heritage home, especially if the repairs are of heritage interest. Repairs to a heritage home can cost up to 50% more than repairs on a regular fixer-upper.
What can you salvage and what needs to be gutted?
Our Anne Winch Ottawa Real Estate and Staging Team can offer you some advice when you are purchasing a fixer upper. We know the market, what sells, what you can keep or what may need to be gutted. Often items you think may need to be replaced often just need some simple repairs. Be careful of older homes that may have asbestos. Although this sounds scary to have asbestos around heating vents it is usually not a problem unless it has broken down and you are breathing in the dust. When you have it removed, call a licensed technician to make sure removal is safely done.
Curb appeal?
Often, we are so absorbed on the inside of the home we forget what needs to be done to the exterior. Sometimes just some paint and new doors or hardware can change the look of the front of your home tremendously. Be aware of any issues that may need attention right away such as a new roof or eaves troughing.
The last bit of advice we can offer is:
- Choose wisely and get any building permits and inspections needed
- Be prepared for surprises and extra costs
- Stick to your budget
We hope that we have given you some sound advice to help you decide if this is a venture you would like to try. We are available to help you find your next fixer-upper project that is right for you, within your budget and in the right neighbourhood. Give us a call and let us find a home that is right for you.