The Dos and Don’ts of Buying a Fixer Upper

You’ve found a home in an ideal location that falls within a price range you can afford. There’s just one catch: the listing claims the property “needs some TLC”. So, should you consider putting in an offer? It depends. Buying a fixer upper can be a great investment. However, it can also be a money-guzzler that’s far more trouble than it’s worth.

Canadian business coach Robyn Gooding, together with her husband, went through the process of refurbishing their B.C. home that was in need of quite a bit of TLC. Here, she shares her dos and don’ts of buying a fixer upper (along with some of our own) so you can better prepare for a fixer upper flip this year.

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Do: Consider the Location

The first thing you should look at when buying a home, says Robyn, is the location. That’s even more important for fixer uppers. If the property is inexpensive but in a great neighbourhood, you can recoup your investment and then some. If you buy in a less coveted location, though, you’ll spend more on a house that you likely won’t be able to sell at a profit. Robyn also says buyers should consider views, natural light on the property and potential nuisances, such as being directly across the street from a hospital.

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Do: Get a Home Inspection

How to invest in a fixer upper without addressing surprise problem after surprise problem? Get a professional home inspection done. If you focus on the right questions to ask during a home inspection, you’ll have a solid understanding of what needs to be fixed and what potential problems you may have to deal with down the line.

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Do: Consider the Layout

The best fixer uppers already have a seamless layout, three to four bedrooms and more than one bathroom. However, don’t just look at what already exists… pay attention to potential. Then consider the renovations required: will you have to knock down walls?Have you considered the downsides to open-concept living?

Robyn suggests asking yourself if you can modernize while maintaining the original features that give the older home its charm and character.

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Do: Address the Easy Fixes

Fixing up a home doesn’t necessarily need to involve major upgrades, explains Robyn. Sometimes it requires a fresh coat of paint or wallpaper, new fixtures or refinishing the floors. If you’re going to get a big return on a small investment, that fixer upper is definitely worth buying.

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Do: Consider the Time and Skill Involved

Remember that getting a fixer upper from current state to where you want to take it requires considerable time and effort. If you don’t have the time, skill or inclination for tackling even those simple DIY home upgrades, it’s wise to budget for a contractor and set aside time to be on call to supervise the work. In other words: don’t assume you can rope in family and friends to help get the job done in exchange for pizza and beer.

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Don’t: Try and Do Everything Yourself

One of the most important things to know when buying a fixer upper is what you can’t – and shouldn’t – do yourself, says Robyn. Patching a wall is easy enough to DIY with a few YouTube videos to guide you, but unless you’re a qualified plumber or electrician, those are the kinds of home reno projects you should always hire professionals for: in fact, local building codes may require it.

Bohemian style room with patterned rug, large plants and wood furniture.

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Don’t: Cut Corners With Materials

Using inferior materials is a quick way to incur unexpected costs in the near future. You don’t have to opt for the most expensive option, but you should consider the durability of whichever materials you choose. Always order more than you think you’ll require, and inspect the materials for defects before you purchase.

$Do: Do the Math$

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Do: Do the Math

When considering buying a fixer upper, make a list of everything you’ll need to do to make the house liveable. Make another list of the renos required to get it to “dream home” status. Rank the tasks in order of priority, and request multiple quotes to get a more accurate idea of costs. Work out how much money you’ll need right now and how much you should save up for later. Robyn recommends drawing up a budget and adding 25 to 30 per cent, then sticking to it.

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Do: Get Your Financial Ducks in a Row

Can a first-time homebuyer buy a fixer upper? Of course! However, it’s important to ensure you’ll have the money to pay for that fixing upping. Speak to your mortgage lender about your options: maybe that means getting a loan that includes the home purchase in addition to home improvement costs.

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Don’t: Spend All Your Money

It’s not news that owning a home comes with unexpected costs. Maybe you discover mould in the walls. Maybe a pipe bursts. Maybe there’s a fire or a flood. Maybe a pandemic means you suddenly need to convert your living room into a work space. Robyn recommends always having an emergency fund to help soften the financial blow.