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 purchasing a fixer-upper, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa warns buyers to fully understand 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
- 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
- Check the condition of the windows and doors, including seals and frames. Wooden window frames will most likely need to be replaced unless properly cared for.
- 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 the kitchen and bathrooms.
- Look for signs of mould 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, inspecting the geyser for leaks and finding out how old it is is still advisable. Most geysers last around ten 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
- While the electrical compliance certificate that the seller will need to provide will cover most of this, 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- Check the electrical panel for any signs of damage or outdated wiring.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
- 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 the cost of purchasing a new toilet, bathtub, basin, faucets, etc.
- If kitchens need to be redone, research the cost of purchasing new cabinetry, countertops, backsplash tiles, etc.
In all these areas, Goslett recommends hiring a professional home inspector for a thorough assessment. He also recommends having 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.
As a final piece of advice, Goslett also recommends bringing in a local real estate professional from the start. “An agent can help buyers to maximise 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 concludes.
Writer: Kayla Ferguson
