What to know: buying a home that requires renovation

In Quebec as well as most of Canada, real estate prices are rising. Taking on new construction projects has become too expensive for many households. Thus, many of those homeowners are turning to buying pre-constructed homes that require renovation. This solution requires a little more effort upfront but is often cheaper and allows for the dream of owning a new home to avoid turning into a nightmare.

In 2018, Montreal's residential real estate activity increased by more than 5% compared to 2017. Thus, the median price of a single-family dwelling stood at $492,000. In contrast, the median price of condominiums reached $325,000. (Source: Centris). These prices are indeed very high, even more in 2022, and push many families to try other solutions to become homeowners.

So, is it a good idea to buy a house that needs to be renovated? And how can you avoid a potential bad deal in the housing market? Luckily, our article will help to answer all these questions.

Buying a house that needs to be renovated

source: unsplash

1. The cost to renovate the property you buy

It should come as no surprise that this is the most common mistake made by new buyers. Before buying a property that will need to be renovated, it’s essential to research and investigate what to look for as well as specifics regarding the property itself. This should include taking the time to compare prices of similar residences in the same neighbourhood as well as calculating all the costs associated with the renovation and restoration of the dwelling. It’s obvious that the goal is to find a bargain home, as this will start your project on the right foot.

2. Professional advice from a building inspector

Even if you buy a house that doesn’t seem like it needs work done or a major overhaul, it is highly recommended that you consider using the services of an inspector. Thanks to their expert eye, they will be able to identify any existing problems. A house that has obvious signs of wear and tear and thus needs renovation will require a more thorough inspection because the work will be extremely important.

Among the components that should be inspected in depth: plumbing, roofing, the presence of asbestos, as well as mould in the walls. Use a professional who, in addition to the inspection, can give you a detailed report on the work that will need to be done. Afterwards, you can take this document to a contractor for a cost estimate.

3. Considering the present and the futur