Tips for Buying a Fixer-Upper Property

Along with the obvious advantage of purchasing a property at a more affordable price, buying a home in need of work can be a good strategy, giving you the opportunity to really put your stamp on a property. Although it can be a fun and rewarding experience, buying a fixer-upper property comes with its own set of challenges. If you’re thinking about tackling a project home, here are some helpful tips to make sure the process goes smoothly, and you end up with a home you love and can afford.

1. Know your budget (and add a cushion)

First things first, figure out what you can spend. You’ll need to think about more than just the price of the house - factor in renovation costs and extra money for those inevitable surprises that pop up.

It’s smart to include a buffer of about 10-20% for unexpected costs, because let’s face it, something always comes up. Also, look into mortgages designed for fixer-uppers, like renovation mortgages, which lets you borrow for both the house and the repairs.

2. Study the Home Report

A fixer-upper is bound to have some issues, but you want to know what you’re really getting into. Understanding the Home Report of potential properties is critical. Your solicitor estate agent can help you understand the Home Report, a highlight issues that aren’t always obvious at first glance.

It’s worth considering bringing in specialists, like a plumber or an electrician, to give you a better idea of what repairs will cost. This way, you won’t be hit with nasty surprises down the road.

3. Location, location, location

Even with a fixer-upper, location matters! The right neighbourhood can boost your home’s value after the renovations, but if the area is declining or has high crime rates, it could be tough to recoup your investment.

Do some research on the neighbourhood, looking at things like recent house price reports, the school catchment area, and future developments. Buying a fixer-upper in a good location can be one of the best investments you make. Handy tip… look for the “worst house on the best street”.

4. Handle the big repairs first

It’s tempting to jump straight into the fun stuff like painting and picking out new light fixtures, but before you do that, take care of the big, essential repairs. Things like fixing the roof, foundation issues, plumbing, and electrical systems should be your priority.

These repairs are critical for the safety and stability of the property, and you definitely don’t want to put them off. Once the essentials are taken care of, then you can move on to the more exciting cosmetic upgrades.

5. Decide what you can DIY (and what you can’t)

If you’re handy, doing some of the renovations yourself can save you money. But be honest with yourself about what you can handle. Simple tasks like painting are great DIY projects, but leave the complicated stuff, like electrical work or plumbing, to the professionals.

Hiring contractors for these bigger jobs may cost more upfront, but it’ll save you from expensive mistakes - or worse, unsafe conditions.

6. Be realistic about the timeline

One common pitfall with fixer-uppers is underestimating how long the renovations will take. It’s easy to assume things will go quickly, but delays are pretty much inevitable - whether it’s waiting for materials or dealing with unexpected repairs.

Set a realistic timeline and prepare yourself for it to take longer than expected. This will help you stay sane and keep the process less stressful.

7. Think about your long-term plans

Before you dive into a fixer-upper, ask yourself what your long-term goals are. Are you planning to live there for years, flip it for a quick profit, or rent it out? Your answer will shape how you approach the renovation.

If you’re flipping it, you’ll want to focus on upgrades that boost resale value, like updating the kitchen and bathrooms. But if you’re going to live in it long-term, you can prioritise personal touches and comfort.

Wrapping it up

Buying a fixer-upper is a great way to get a property at a lower price while customizing it to your liking. But it takes careful planning, budgeting, and patience. With the right approach, you can turn a fixer-upper into the home of your dreams or a great investment! Just remember to keep your expectations in check, hire the right pros for the tough jobs, and always, always have a backup plan for those inevitable surprises.