A trait of a booming market is the desire of buyers to find a bargain by seeking our properties that need remodelling or redevelopment.
It’s a great way into the market for investors, property developers and, in some circumstances, first-time buyers.
But unless you’ve spent time researching your target property, your prospective purchase might prove riskier than anticipated.
As an experienced real estate agent in our neighborhood, I always advise my clients – especially in a strong seller’s market – to avoid cutting corners to get ahead of rival buyers.
Folks with the funds to rush into a deal can find themselves with unforeseen building repair bills that run into six figures or a remodeling plan that is met with anger by local authorities.
Older buildings can be subjected to all sorts of rules to preserve their character. You might be prevented from altering the original form of the building, and there could be restrictions on materials and colors.
To ensure your fixer-upper project is a success, here are some tips.
- Before making an offer, go to the local planning authority to see if any issues might affect its remodeling. Ask about whether there are any rules around modernizing the building, as this may affect the neighborhood’s character.
- Understand the property’s history. Has it always been a residential site? Has the land ever been zoned for commercial purposes? If so, you may need to look more carefully at issues such as soil contamination.
- With apartments, are you thinking of buying in a mixed-use building – that is, one that includes retail or office space as well as residential? If so, you should ask about local zoning plans to understand how the neighborhood is likely to develop and change in the years ahead.
- Check the strata plan rules about what you can and cannot do in terms of internal remodeling.
If I can help you secure your dream investment property or sell your existing property, please do not hesitate to contact me.