Diamond in the rough

Looking for that diamond in the rough? We’ll it’s out there! Since homes are moving fast you’ll need the help of a professional Realtor to help you find one.

(Photo: Hugh Cairns)

I am a fan of fixer-uppers. I see a lot of homes that are rich in history but short on modern conveniences. Many I see are in good shape and structurally sound, and I expect with the right buyer they turn out to be a good investment of time, money, and sweat equity.

Q. My partner and I are considering buying a fixer-upper house rather than a new home. What should we look for?

A. Diamonds in the rough come in all shapes and sizes, but generally the approach is to find one that needs some TLC to make it shine again. If you can see past the aesthetics and can fix the basics then you’re ready to roll the dice.

It’s always important to know what the scope of work is and what you’re up against. Buying a fixer upper requires a budget, but if you learn how to spot an undiscovered bargain, you can turn up surprising deals even in this hot real estate market.

My Realtor friends tell me that me that more than 90% of buyers judge a home by their first impression. Sometimes their first impressions come from the internet or by just driving by. If they don’t like what they see at first sight, they don’t make an appointment for a showing. If you’re looking for a diamond in the rough, that’s not the way to go about it. You’ll have to get inside to visualize what it will look like after a few key improvements.

From a home inspector's point of view, anything about a house can be changed except for the location. You’ve heard it but it’s worth repeating, the classic tip for fixer uppers is to buy the worst house on a good street, and that is still a great strategy. The reason is that since you are buying low relative to the other homes the risk is that you won’t overpay for the home. Plus, you can take advantage of increasing the property’s value by doing basic fixes to bring the value in line with the neighbourhood.

It sounds strange, but if you’re looking for a bargain, then mess, dirt and clutter are attractive. To others, mess can turn off a buyer. What is important is the layout and the general condition of the home. Landscaping is sweat equity - large improvements can be gained with little work.

When looking at older homes, many of my clients ask about taking out interior walls to open up space. In most cases removing non-load bearing walls is all that may be needed to turn a diamond in the rough into a real gem.

There are some things that can quash buying a diamond in the rough. If you’ve been on one of my inspections you’ll know that water is the biggest enemy of any home. It’s rare when we find structural cracks in foundations. Conditions similar to these may end up as bigger and costlier fixes, but you won’t know for sure unless you get some estimates before you buy, so don’t get dismayed until you get the straight goods.

If you’re looking for a diamond in the rough then you should be wary of homes that have already gone through major upgrades. Instead, focus on homes that don’t need major work but can be dramatically improved with aesthetic touches. A true diamond in the rough usually needs some paint, trim, interior doors, flooring and cabinetry. Curb appeal is huge so expect to do some landscaping and a fresh coat of paint. If you’re ambitious and want to go a step above, then a new roof covering, a new hot water tank and furnace is always a good investment.

I am a fan of fixer-uppers. I see a lot of homes that are rich in history but short on modern conveniences. Many I see are in good shape and structurally sound, and I expect with the right buyer they turn out to be a good investment of time, money, and sweat equity.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.