Buying A Fixer-Upper in Saskatchewan
While purchasing a home that needs renovating may be less expensive, here are eight things to consider before you buy.
By Emily Southey | 5 minute read
Purchasing a home in need of repairs is one way to save some money up front, but you’ll want to be prepared for a number of challenges.
Buying a home that requires a lot of work is an exciting challenge for many homebuyers. The prospect of renovating your home to your liking while also benefiting from a lower purchase price can be appealing. But what does buying a fixer-upper really involve and what are the pros and cons?
A fixer-upper is the name given to a type of property that requires major renovations in order to live in it. It’s as far away from a turnkey home as you can get, so if you’re looking for a move-in ready home, then a fixer-upper isn’t for you.
Renovations for a fixer-upper are not usually a choice — they are a necessity if you want to live in the property comfortably. Since so many repairs and renovations are needed, fixer-upper properties are typically priced below the market average, which is what makes them attractive to certain buyers.
Examples of the repairs that may be needed include replacing the floors or walls and fixing the roof. As you probably know, these are not insignificant repairs and will likely require a lot of time and money. Smaller repairs will also be needed for fixer-uppers, like painting and redecorating.
When buying a home that needs work, hiring a home inspector is key. A home inspection will give you a realistic idea of the shape the property is in and the work that is needed. From there, you can reach out to contractors in your area to obtain quotes. Whether you’re in Regina, Weyburn, or another city in Saskatchewan, costs may vary so you will need to factor in the repair and renovation costs in the area in which you want to buy into the purchase price.
The Benefits of Buying a Fixer-Upper Home in Saskatchewan
Whether you buy a home in Swift Current, or Yorkton, there are several advantages to buying a home that is not move-in ready.
1. Lower purchase price
Buying a fixer-upper is usually cheaper than buying a turnkey home, which might make it an ideal choice for buyers on a budget. Since fixer-uppers require serious repairs and renovations, sellers will list them at lower prices. Although you will have to be careful to factor in the cost of renovations, buyers could save a significant amount of money by buying a home that needs work.
2. Cheaper mortgage payments
Since the cost of buying a fixer-upper is less, so too are the mortgage payments. You won’t require nearly as large of a mortgage loan due to the purchase price being lower. This translates to less interest, which frees up additional money for you to spend on other expenses, such as renovations.
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3. Your home will appreciate faster
Fixer-uppers typically appreciate in value more than other homes. Since their value is generally reduced to begin with, even minor updates and renovations will make a big difference when it comes to resale value.
4. You can customize the home to your liking
Another benefit of buying a fixer-upper is that it allows you to customize the home to your liking. If you plan on living in the home for some time, you will probably love the fact that you get to personalize it, rather than paying more for someone else’s renovations that may not be to your liking. Since the home requires extensive renovations, you can use it as an excuse to design it exactly to your tastes.
5. You can live somewhere out of your price range
Buying a home that needs renovations might give you the opportunity to live in a neighbourhood that you otherwise couldn’t afford. For example, bigger cities like Saskatcheway and Regina are becoming more expensive to buy a home in. However, if you find a fixer-upper within your price range, you might be able to find something in a more desirable neighbourhood, even if it takes time and money to get it in a liveable position.
The Drawbacks of Buying a Fixer-Upper Home in Saskatchewan
Buyers must also be aware of the drawbacks that may come with purchasing a fixer-upper home in any Saskatchewan city, whether it be Character, Blackstrap, or Assiniboia.
1. Not as many options
Homes that need a lot of work are far less common than move-in-ready homes. This could mean a much longer house-hunting process.
2. Repairs and updates can be costly
The reality is that renovating a home can be incredibly expensive. Depending on what repairs are needed, you could spend as much money renovating your home as you did on the down payment, if not more. Buyers need to carefully consider their budget before committing to fixer-upper. Hiring a professional home inspector to thoroughly inspect the property before buying will also ensure you know what you’re getting yourself into.
3. The renovation process can be slow and stressful
One final drawback to buying a home that needs renovating is the time it takes to renovate the home. Most renovations take longer than expected — especially if there are major, like a full gut. It’s also not uncommon for new problems to arise as a contractor is renovating a home, which can result in unexpected and costly repairs. This can make the whole process incredibly stressful. If you don’t have the time or patience to deal with the stressors that come with buying and repairing a fixer-upper, then purchasing a move-in-ready home might be your best bet.
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