What You Need To Know Before Buying A Fixer-Upper

Last night when you were looking at the printout from the Nanaimo real estate MLS you found the perfect home in the exact neighborhood you want. Except, the home was listed as a fixer-upper. Buying a house that needs a lot of updating and remodeling let’s you create your dream home your own way - but it can also end up being a money pit if you’re not careful.

Here are some important things to know before buying a fixer-upper in Nanaimo.

Reasons for buying a fixer-upper

Fixer-uppers are homes that need a lot of work but can also offer a lot of future potential. Some of the most common reasons for buying a fixer-upper include:

• Getting the deal of a lifetime, because most fixer-uppers are sold by people who don’t have money for repairs and are highly motivated to sell.
• Handymen and contractors are in your family, so you can get a lot of the work done at a discount from people you trust.
• Doing your own updating and renovations helps you purchase a house that’s budget friendly while adding value to your home with “sweat equity”.
• Flipping a house is a business you’ve always wanted to get into, and fixer-uppers are the perfect way to get started.

What makes a good fixer-upper?

Experienced real estate investors will tell you that money is made when you buy a home, not when you sell it. In other words, a good fixer-upper is a house that nobody wants today but will jump at the opportunity to buy it after you’ve fixed it up.

However, not all fixer-uppers on the Nanaimo real estate MLS are worth the risk. The top factors that can help you separate a good fixer-upper from a bad one are:

• Location, location, location: bad fixer-uppers are located right next to schools, shopping centers, or highways. A good fixer-upper is one in a desirable location where people would love to live.
• Average type of home: the configuration of the house – the number of bedrooms and bathrooms – should match what most of the other homes in the neighborhood have. For example, if other homes are three bed/two bath, and your fixer-upper has two bedrooms/one bath, it won’t offer what people looking in the neighborhood want to buy.
• Layout of the house: oftentimes fixer-uppers for sale have outdated floorplans that require walls to be removed so the layout can be improved. Moving a wall can be difficult and expensive, especially if the wall is load bearing.

Calculating the cost of fixing up your fixer-upper

Once you’ve found a fixer-upper that makes sense, the next step is to crunch the numbers. Make a list of everything that needs to be repaired, updated, or replaced. For major exterior issues like leaks, missing shingles, or aging materials, it’s wise to consult a roofing contractor early, as roof repairs can significantly affect your renovation budget.

Inexpensive items to fix

• Patching and painting walls and stripping wallpaper
• Replacing carpet or stripping and resealing wood floors or tile
• Putting up new light fixtures or ceiling fans
• Door and window trim and baseboard replacement
• Broken glass repair
• Resurfacing or refinishing kitchen and bathroom cabinets
• Installing new plumbing fixtures in the bathrooms and kitchen
• Painting the outside of the house
• Updating the landscaping

Costly things to repair, update or replace

• Putting in a new furnace or central air conditioning system
• Making structural repairs to the foundation and basement
• Reroofing and replacing water-damaged roofing joists and beams
• Replacing electrical and plumbing lines and bringing them up to code
• Completely remodeling a kitchen and bathrooms
• Adding an extra room onto the house
• Getting rid of pet odors or cigarette smoke smells
• Removing asbestos from wall or attic insulation