Remodeling a fixer-upper looks fast and easy on popular home improvement TV shows, but renovating a property in disrepair or need of major updating is a significant undertaking. Buying and renovating a fixer-upper can be worthwhile with smart planning and preparation.
You may be impatient to get out there and start looking at properties immediately, but an important first step is to assemble a team of pros experienced in working with older homes. Having a general contractor, real estate agent, and home inspector on your side may come with a price, but the savings you may realize as a result of their guidance outweigh the costs. The contractor and inspector can steer you away from properties with problems you may want to avoid, while the real estate agent can advise you on the realistic value of a remodeled property based on local market trends and comparable homes in the neighborhood.
A home may have a great location or meager price, but it’s what’s underneath that counts. These are the areas that need thorough inspection before you make an offer:
Foundation:
Basements should be dry and without cracks.
Roof and siding: Look for roof leaks and missing shingles, and check the flashing condition around the chimney. The siding should be inspected for loose boards, signs of water damage, or rot. Pay particular attention to siding if it appears to have been recently painted, which may have been done to cover up problems.
Electrical: Very old homes will likely need repairs or even a replacement of electrical wiring. Ensure that there’s sufficient power in the system and that the current panel can handle any changes you have planned. Verifying the electrical system’s safety is first and foremost in any case.
Heating and cooling: Check the age of these systems and whether they are appropriately sized for the home’s energy load.
Plumbing: Checking for leaks is a given, but you’ll also want to check the water pressure at every point in the house. In very old homes, it’s imperative to check for the type of piping used.
Toxic materials: Asbestos is a known carcinogen — check for it in flooring, wall and ceiling plaster, and pipe insulation. In homes built before 1978, the seller must give you an EPA-approved lead hazard abatement brochure according to federal law. Both of these issues can be costly to rectify.
Before buying a fixer-upper, ensure you’re ready for the realities of the project.
Line-up financing: Conventional loans may not be an option if the property doesn’t qualify for a certificate of occupancy, proving that the home is habitable and complies with local building codes. A fixed-rate mortgage also wouldn’t cover the costs of remodeling. Good options are Fannie Mae HomeStyle Renovation loans and FHA 203(k) mortgages, designed to include repair costs.
Expect some chaos:
Leave room for error: Allow for at least some cost overruns on even the most well-planned remodeling projects. Have a contingency for unexpected repairs and be flexible on schedules when issues arise with unavailable materials or weather-related events that are out of everyone’s control.
Remodeling a fixer-upper is challenging, but it’s also rewarding. You can keep the project running smoothly by working with an experienced, professional contractor. Every contractor in the Gi Construction network has been vetted to ensure they are properly licensed, insured, and have the experience to do the job right.
