Buying an old house, a home that’s sustained damage or a property that needs serious TLC can save you money and provide freedom and flexibility in terms of design, but there are risks. If you’re thinking about taking on a fixer-upper and trying to turn it into your dream home, here are some essential considerations.
How much will the project cost?
Cost is a driving factor for most people who are in the process of buying a new home. In many cases, it’s as simple as paying the purchase price and extras, such as legal fees and taxes. If you buy a fixer-upper, budgeting is more complex. You’ll need to factor in the cost of renovations, including everything from labor, materials and appliances to flooring, furniture and services, such as plastering, plumbing, building, and landscaping. It’s also crucial to add a contingency fund. Research shows that a quarter of projects run over budget
What level of work is required?
Many houses aren’t perfect, but there’s a huge difference between cosmetic work and major structural projects. When you view properties, it’s wise to get a sense of how much work is required and what kind of services and professional expertise you’ll need. Home surveys will give you an accurate picture of the condition of the building. You can then figure out priority jobs and start looking for local businesses. Simple online searches can help you determine what companies do foundation repair, who you can call about water damage or broken pipes, which businesses specialize in damp-proofing, and who to trust for roof repairs in the area. Once you’ve got quotes, you can calculate costs.
How much value can I add?
When you buy a property that isn’t in good condition, it’s beneficial to think about adding value. You don’t want to spend a fortune on renovations and updates to find that you won’t make your money back.
How long will it take?
The timeline for home makeovers can vary hugely, depending on how much work is needed, what kinds of jobs need doing, how much money the buyers have, and what level of help is available in terms of doing DIY yourself and roping in friends and family members. It’s always good to get an idea of how long a project will take, whether you plan to do work while you’re living in part of the property, you’re renting, or you’re staying with friends or relatives. This will help you plan, manage your budget and set expectations.
Is it possible to make the property work?
We all want to live in properties that look and feel special, but our homes also have to work on a practical level. Before you commit to buy, ask yourself if it’s possible to make the property work for you. Consider factors that may be beyond your control, such as purchase price, location, condition, and building restrictions and regulations.
Taking on a fixer-upper can be an incredible opportunity, but there are often significant challenges. Key things to consider include costs, the type of work you need to do, the potential to add value, the project timeline, and the viability of creating a home that works on all levels.
