Ten Ways to Make Buying a Fixer-Upper Worth It

Jackson Middleton • November 13, 2017

Before buying a fixer-upper, consider these tips to ensure this option is right for you, and planned renovations prove profitable.

1 . Consult a real estate agent to find out more about the neighbourhood

The real estate history (recent sales, pricing) of a neighbourhood will tell you if investing in a fixer-upper is worth your time and money. An agentcan advise you on community news, including property development, environmental projects and other factors that will have positive and negative effects on your home’s resale value.

2. Schedule an extensive home inspection

Houses that need work may contain structural or cosmetic concerns, so it is important to know what elements need to be fixed in order to work those costs into your budget. Invisible upgrades (electrical, plumbing and heating) can be expensive fixes that don’t always increase a house’s value because they are naked to the eye of a potential homebuyer.

3. Request an estimate from a contractor

Based on an assessment by a certified contractor, determine how much money you’ll need to set aside for desired upgrades.

4. Know what you’re getting yourself into – both financially and personally

When buying any house, it is important to stay afloat and avoid swimming in debt. Fixer-uppers aren’t just hard on your wallet. Renovations can be disruptive, stressful and time-consuming, so it is imperative to have a solid financial plan in place and your family’s lifestyle taken into consideration prior to purchase.

5. Work out a schedule

Knowing if and when you plan to buy [?] your house can help you manage your renovation schedule and budget accordingly.

6. Know the law

Contact your local municipality office and request information on your city’s building permit laws before undergoing any renovations. Many large structural changes (additional storeys, extensions, decks) require a building permit. Future buyers might request proof of permits on condition of sale.

7. Don’t over-improve for the market

Once the renovations start rolling, you might not want them to stop. Designing your dream home is tempting, but only if the housing market will reimburse you for your efforts. Finishings (wood, stone, hardware) should be in line with houses in the neighbourhood.

8. Stretch your money

Forgo expensive wooden kitchen cabinets in lieu of higher quality countertops. Prime features of a home(luxury work surfaces, flooring, appliances, lighting) hold their value more than cosmetic fixes (paint, cupboards, carpet). Opt for energy efficient appliancesthat will save you money during residency and will be an attractive detail on resale.

9. Avoid over-customization

Remember that people’s tastes vary, so pull back on any customization that might discourage potential buyers.

10. Challenge yourself

Renovating is an excellent opportunity to try do-it-yourselfprojects. Simple changes like paint colour or swapping cabinet hardware are easier ways to be involved in your renovation and can also save you on labour costs.


This post was was written by Genworth Canada, it was originally published here.

RECENT POSTS 

How Your Loans and Spending Habits Are Quietly Shaping Your Credit Score

By Deploy.Mortgage • April 10, 2026
Your credit score is one of the most important numbers in your financial life — especially when it comes to getting a mortgage. But for most Canadians, how that number actually gets calculated remains a bit of a mystery.

RRSP As A Downpayment

By DLC Canadian Mortgage Experts • December 28, 2022
Did you know there’s a program that allows you to use your RRSP to help come up with your downpayment to buy a home? It’s called the Home Buyer’s Plan (or HBP for short), and it’s made possible by the government of Canada. While the program is pretty straightforward, there are a few things you need to know. Your first home (with some exceptions) To qualify, you need to be buying your first home. However, when you look into the fine print, you find that technically, you must not have owned a home in the last four years or have lived in a house that your spouse owned in the previous four years. Another exception is for those with a disability or those helping someone with a disability. In this case, you can withdraw from an RRSP for a home purchase at any time. You have to pay back the RRSP You have 15 years to pay back the RRSP, and you start the second year after the withdrawal. While you won’t pay any tax on this particular withdrawal, it does come with some conditions. You’ll have to pay back the total amount you withdrew over 15 years. The CRA will send you an HBP Statement of Account every year to advise how much you owe the RRSP that year. Your repayments will not count as contributions as you’ve already received the tax break from those funds. Access to funds The funds you withdraw from the RRSP must have been there for at least 90 days. You can still technically withdraw the money from your RRSP and use it for your down-payment, but it won’t be tax-deductible and won’t be part of the HBP. You can access up to $35,000 individually or $70,00 per couple through the HBP. Please connect anytime if you’d like to know more about the HBP and how it could work for you as you plan your downpayment. It would be a pleasure to work with you.