Purchasing a fixer upper is an appealing option, especially for first-time buyers. Once in the property market, it is easier to build from there, as property is an appreciating asset that will help homeowners afford the upgrade when it later becomes time to sell.
Before going ahead with purchase a fixer-upper, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, warns buyers to make sure they have a full understanding about what it will cost to get the home up to scratch. “Buying a fixer-upper can be exciting, but it's essential to thoroughly inspect the property to ensure you understand what you're getting into,” he warns.
To help young buyers with this inspection, RE/MAX of Southern Africa shares the following checklist:
Structural Integrity
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- Check for cracks in the foundation, walls, and ceilings.
- Look for signs of sagging or uneven floors.
- Inspect the roof for any signs of damage or leaks.
Leaks
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- Check the condition of the windows and doors, including seals and frames. Unless properly cared for, wooden window frames will most likely need to be replaced at some stage.
- Look for signs of water damage on the home’s exterior, especially around gutters and downspouts.
- Look for signs of water damage on the home’s interior, especially in kitchen and bathrooms.
- Look for signs of mold or mildew, especially in basements or bathrooms.
- Plumbing
- While most of this will be covered by the plumbing compliance certificate that the seller will need to provide, it is still advisable to inspect the geyser for leaks and find out how old it is. Most geysers last around 10 years, so knowing that it might need to be replaced soon can help you budget more effectively.
- Flush all toilets, turn on faucets and check for water pressure and leaks. Importantly, water pressure is typically not one of the checks in the issue of a plumbing certificate, so it is good to check this beforehand.
Electrical
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- While most of this will be covered by the electrical compliance certificate that the seller will need to provide, it is still advisable to test light switches and outlets to ensure they are functioning properly.
- Check the electrical panel for any signs of damage or outdated wiring.
- Look for exposed wires or overloaded circuits.
Renovations
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- Check for loadbearing walls, as these cannot be shifted or removed unless some other form of support is installed to take the weight of the floor or roof above it. This can be costly and could easily blow your renovation budget.
- If bathrooms need to be redone, research what it costs to purchase a new toilet, bathtub, basin, faucets, etc.
- If kitchens need to be redone, research what it costs to purchase new cabinetry, countertops, backsplash tiles, etc.
In all these areas, Goslett recommends the use of a professional home inspector for a thorough assessment. “It is also useful to have a contractor visit the home with you to provide a rough estimate of the cost of repairs and renovations needed to bring the property up to your standards,” he recommends.
As a final piece of advice, Goslett also recommends bringing in a local real estate professional from the start. “A RE/MAX agent can help buyers to maximize the possibility of good returns. Equipped with years of experience in the area and up-to-date with the most current market trends, real estate professionals will have the best idea of what would generate value in their given market and can help buyers avoid the mistake of overcapitalizing on the project,” he says.
READ: 9 cost-effective room transformations that will redefine any space
Mike Greeff, CEO of Greeff Christie’s International Real Estate, urged buyers in article published in February 2019, to recognise the undeniable opportunity of buying a fixer-upper property.
According to Greeff, these are some of the definite advantages of buying a property in need of some TLC:
1. Buying a property at a good price
Fixer-upper properties are not high up on the list of desirability, and as such they can in most cases be bought at a fantastic price from an agency and a willing seller. Sellers of fixer-upper properties are aware that their properties may be a difficult sell and will take this into consideration when deciding on a selling price for their home. Those looking to get into the market as first-time buyers could benefit from the pricing of fixer-upper properties.
2. Freedom to put your own creative spin on things
Putting your creative spin on things allows you to bring your vision to life. If your fixer-upper property does not require major reworking, then cosmetic changes may be the way forward. Simple changes such as interior decorating and lighting could be all that is needed to make the transformation of your property a success. If you have a certain colour scheme in mind or would like to use one of your favourite colours, this would be the perfect place to live out your colour scheme dreams.
In letting your creativity run wild, you are free to reassign rooms to serve different purposes than what they may have initially been used for. This could mean assigning would-be living areas as bedrooms, extending kitchens by breaking down walls, etc. The options are limitless and entirely up to you.
3. You can upgrade your property and ‘flip’ it for a tidy profit
Buying a property for a potential upgrade is not always about using it as your residence. At times, this may be for the purpose of ‘flipping’. Flipping properties has become widely popular in recent years with shows such as Flip or Flop and Fixer Upper becoming television sensations.
Flipping a property simply means taking a property (in most cases fixer-upper properties) and completely renovating it to be resold once again, whereby the seller makes a considerable profit from the sale of the renovated home.
Whatever you may choose to do with the fixer-upper you buy, the opportunities are endless and can be achieved with just a little bit of effort, imagination and innovation.
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