Essential Tips For Buying Your First Fixer-Upper Home
If you're eyeing the housing market and thinking of investing in a "fixer-upper," you aren't alone. According to the Financial Post, more Canadians are purchasing property for investment purposes . Many of them intend to flip the homes they buy and sell them for a profit. It makes sense, as flipping can net profits of some $62,300 on average .
Whether you plan to flip the property or want to live there yourself, buying a fixer-upper requires due diligence. You don't want to sink your money into a house that will cost more to fix than it will ever be worth. A local real estate broker like Damian Sgro of Ontario can help you find the right house to fit your needs.
Before diving into the housing market, familiarize yourself with the nuances of purchasing a fixer-upper. Here are the basic steps.
Decide what you can afford
Before you start scouring the market, set a budget. Houselogic explains that when you're buying a home that will require renovations, you have to consider not only the sale price but also the cost of improvements . The expenses needed for renovations will depend on various factors, from the state of the property to how much renovation work you can do yourself. There is also the cost of building permits and licenses to consider.
If you find there isn't much on the market within your price range, there are ways to save money. For example, Redfin reveals that if you buy a house "as-is," you can usually get a significantly lower sale price . This means you buy the house in the current condition and can't request the current owner to make changes. While it can be cost-effective, buying property as-is comes with risks. Consult a lawyer before proceeding.
Get a professional inspection
Whether you purchase your property "as-is'' or get a home on the regular market, it's important to schedule a home inspection before you close any property deal. Square One explains that a home inspection is done by an objective third party who assesses the property for electrical, structural, and appliance-related issues. A home inspection also checks for problems like mold, asbestos, or pests.
Why is this so important? A home inspection can identify possible health and safety issues and pinpoint problems that will detract from a property's value. When you're buying a fixer-upper, this information will help you determine how much you'll have to invest in the property to make it safe and habitable.
Make your offer
If you've done the math and are confident that you want to buy a property, you can go ahead and make an offer. Ideally, you will have a professional realtor working with you throughout this process. The Balance explains that a skilled real estate agent can often help you save money . These experts are professional negotiators. Plus, they will be able to review contracts and ensure there aren't any issues to worry about.
Plan your renovations
Once you have the paperwork out of the way and officially own your fixer-upper, you can start renovating. Don't just jump into the process, however. It's important to plan the details. Planning allows for a more detailed cost analysis. A general contractor can help you sketch out and execute your vision. Clever reveals that it's best to work with a contractor before you start renovations. Don't wait until you're ready to start remodeling.
Buying a fixer-upper doesn't come without risks. However, if you do it right, you can benefit from big savings. Follow the above tips to guide you through the process.
For help finding your perfect fixer-upper in the Ontario province, trust Damian Sgro. A licensed real estate broker, I am dedicated to giving home-sellers and -buyers the facts they need to make smart decisions. For the latest real estate news and additional resources to help you navigate the housing market, visit my website .
