How to carefully purchase an older home that you plan on renovating right away

October 25, 2010
Columnist: Gillian Krol; Founder of GoldilocksEstates.com and Licensed REALTOR[R] with Coldwell Banker Horizon Realty

There are a few things to watch out for when it comes to buying an older home that you intend on renovating. In addition to a property inspection, another condition you may want to insert into your contract of purchase and sale is a subject that allows you time to take 3 contractors through the home to get quotes on the cost of doing a big construction job. there’s no sense committing to a real estate purchase unless the renovation project is feasible, especially if you can’t fathom living in a dated house like your grandmother’s ;).

Of course the other option is buying and saving your money. But, if you lack patience and want to start immediately after taking possession, make sure you proceed carefully. Your pockets are only so deep and there’s no sense burning a hole in each of them. If all 3 construction quotes are within your budget and you are satisfied with the information they have provided you can proceed with removing the conditions on the contract of purchase and sale; and therefore, unconditionally agreeing to purchase a home.

When you take possession have a contractor of your choice return to the house to take a second look. Before any work is started, be very clear on what sort of budget you’re working within. Also be sure you know whether or not your contractor will be pulling the necessary permits with the city and hiring licensed, certified trades. Clear lines of communication with your contractor is absolutely necessary before signing off on his estimate. Let him know that if there is any chance you could go over his estimated amount that he revisit the quote before starting any new work that will increase the amount of your final invoice.

If you are looking for a hard-working real estate agent in the Kelowna, Okanagan area give me a call 250-718-5324 or send your questions to info@goldilocksestates.com. Good luck and please remember to send me your before and after photos of your renovation!