Got your eye on a fixer-upper?

When you set out to buy a property that could use a little, or a lot of, work, make sure you are truly prepared to take on the task. Taking on a fixer-upper can be exciting, especially if you have a vision, are  creative and have DIY coursing through your veins.

An outdated or rundown property might be your dream home, and its attractive purchase price might mean the chance to own a home that has more square metres under roof, is situated on a larger block of land, or has a sought-after location.

Interestingly, a survey by RE/MAX in the US early found that of all consumers looking to buy a home last year, more than half (56%) were considering a fixer-upper as a way to achieve homeownership amid challenging market conditions. Location was the major drawcard.

Unfortunately, reality TV shows that gloss over many details in what can be a complex process can pull the wool over the eyes of the inexperienced. Don’t be fooled. Consider these five fixer-upper questions instead.

1. How much can you afford for renovations?

Costs lay the groundwork for all renovation plans and the process you’ll follow. The budget will depend on your personal financial situation, as well as location, property type, renovation goals, and more. Setting a budget at the outset will help you prioritise what to fix. Don’t be perturbed if you overestimate the potential costs, because that can help you deal with unexpected situations that might pop up along the way.

2. What did the home inspection show up?

A professional home inspection is an essential step when buying any property and extra important with a fixer-upper. The professional will focus their examination on the home’s physical structure and major systems, and they will look closely at the foundations, the structural integrity of floors, walls, ceilings and roof, and more. Costs for repair and structural change can vary depending on the severity of damage or wear, and the size and nature of the works.

3. What scale of renovation are we talking about?

What does ‘good bones’ actually mean? If a house is structurally sound and just needs some cosmetic upgrades, the job will involve a very different process than if it requires larger-scale changes or even partial demolition. It is best to know the scale of the necessary renovations to determine the feasibility of your plans before you take on a fixer-upper. Think about who would be doing the work. Hiring contractors can be much more costly than going DIY, but it may be the better, safer and the legally necessary way. You might come up against health hazards like asbestos, mould, lead paint, etc – and you need professionals to remove these safely.

4. What permits will be required?

Each level of government has regulations and restrictions on residential construction, and some will be specific to individual locations and circumstances. Larger-scale home repairs may require permits and inspections during the process. Check with the local authorities to make sure your plans are legally compliant before starting any form of demolition or construction.

5. Can you live through the renovations?

A purchased property that’s a fully functioning house but in need of cosmetic upgrades can provide the chance to space out renovations over time and slowly update the place while you live there. If the property is worse for wear, the fixing of essential features – like foundations, roof, etc. – will take priority over aesthetic changes, and may need to be completed before the house is habitable.