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Looking to get into an area that’s outside of your budget? Well, if you’ve got the time, the know-how and some solid research and planning under your belt, a fixer-upper property might be the answer to getting into your desired area at a price within your budget. 

But before you roll up your sleeves and dive into a major investment with DIY-needs, be sure to do your homework. Factors like location, layout, scope of work to be done and of course, your financials, are major considerations you’ll want to be clear on before taking on a fixer-upper home. 

Read on for 10 key tips to buying a fixer-upper in 2023! 

Location

It shouldn’t surprise you that the first key consideration in your fixer-upper purchase is location, location, location. When it comes to all things real estate, this is often the primary component in how your properties of interest will be priced. Properties come in all shapes, sizes and conditions, but prime real estate location is an irrefutable factor in determining the value of a home. 

For this reason, you might consider a fixer-upper property that’s in need of some serious TLC if it means the property’s sale price rings in more reasonably than other listings in the area. Buying at a great price in a fantastic neighborhood means that (with the proper planning, of course) you’ll be able to recoup on your investment - and then some. But buyer be warned: if you’re investing in a fixer-upper home in a less desirable area, the margin of future profit will decrease significantly, as you are now eliminating the primary draw to your property: the location. 

Consider the layout

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As with any home purchase, the layout of the property is a major point of consideration. Sure, every fixer-upper is going to require some work, the degree of which will vary depending on the state of the home in question. But unless you’re prepared to take your investment down to the studs - which can be both costly and risky - you’ll want to ensure the “bones” of the property look good. 

Does the general layout feel open and welcoming? Can you envision the best use of the space as it’s laid out? Would any walls need to be taken down? Is there any major construction you could foresee right off the bat? And keep in mind; while “open concept” modern layouts are appealing, there’s something to be said for charm and character in a space. Don’t be so rushed to modernize a home that you strip it of the characteristics that make it unique and warm. 

Inspection

A home inspection will allow you to get a professional take on the condition of the property, as well as expert insights on what may need to be done in future, what fixes are urgent, and any potential red flags you might have otherwise missed. 

Don’t overcomplicate unnecessarily 

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Taking on a fixer-upper does not need to mean reinventing the wheel. Often, a few cosmetic touches and some general “easy updates'' are all it takes to freshen up and transform a home. A new coat of paint and refinishing the floors are some popular strategies for an “instant facelift” in a space. 

Consider the time required & your skill set 

Consider your skill level when it comes to home improvements and design. Taking on a fixer upper at any level of renovation will require some skills and general know-how. If you’re lacking in this area, then you’ll have to hire some professional help, including a contractor, in order to turn your ideas into reality. While this certainly represents an added cost, it’s also a safeguard against mistakes you might make without professional expertise on hand. 

To DIY or not to DIY?

The terms ``fixer upper `` and''DIY `` seem to go hand-in-hand, but be wary of taking on anything that could present unnecessary added costs or mishaps if improperly managed. Sure, some people are more than adept at painting a wall for retiling a backsplash, but when it comes to areas like plumbing and electrical, you’ll want to do the smart thing and call in the professionals. You’ll save a lot of time and yes, money, by doing things right the first time - even if that means an initial cost for the expert hands on deck. Spend now to save later, and avoid having to circle back and re-do things down the line. 

Don’t cut corners; spend now to save later

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Sure, it might save you a few dollars to opt for the less expensive materials and tools - but consider the cost of having to replace and redo the work sooner than necessary if these materials aren’t up to grade as far as quality and durability. This isn’t to say that the more pricey components of a fixer upper project are always the best bet, but do your homework and get informed on what materials are worth the initial added cost now, in order to save yourself on unexpected headaches later on. 

Do the math & keep a list of ranked items

Before dipping into the budget on your fixer upper property, consider all the costs you’ll be assuming during the project - and of course, a “rainy day” pocket of funds for those “unexpected” items that will surely come up. If you’ll be moving into the property after purchase, then your immediate costs will include anything needed to ensure the house is livable. 

It’s important to have a running list of priority items, ranked by urgency and with multiple quotes for those bigger ticket tasks, so you’ll have a clear notion of what to expect for future costs. You’ll want to have a solid idea of what your immediate costs will be, as well as how much you’ll need in your budget to get the ball rolling and stay on schedule through the estimated time it will take to complete your fixer-upper to satisfaction. Professionals often suggest taking your budget and tacking on an additional 25-30% for the unexpected. 

Organize your finances 

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It’s one thing to jump into a home project and get organized in your project tasks - it’s another to have your finances in order - and this especially, you’ll need to do ahead of time. 

Ensuring your finances are in order before committing yourself to such a large investment is vital in saving yourself from future financial strain and worry. This is another area where professional guidance will not only make a world of difference, but is completely necessary in positioning you for the most stress-free fixer-upper experience possible. 

Budget is key

With your potential costs laid out and your financials organized, you’ll have everything you need to create your budget. And while your original budget will often undergo some changes as the project rolls full-steam ahead, there’s a difference between being flexible and straying from the plan. Your budget is your safeguard against overspending and misallocating funds. It is your financial blueprint and should not be deviated from unless absolutely necessary. Keeping to your budget as much as possible will allow you to operate with confidence, knowing what you can and can’t say yes to, and where you do and do not have flexibility as the project unfolds. 

On the hunt for the perfect “fixer-upper “property to suit your real estate needs? Contact us today!

Royal LePage Connect Realty is an independently-owned Royal LePage franchise, with multiple locations across the GTA to help serve you and your clients.