Purchasing a low value home with the intention to transform it into your dream house can be a great way to guarantee the aesthetic and functionality you are searching for in a home. It can also be a great way to flip a house for resale and increase the home’s selling value. And with tons of home remodeling TV shows and books out there, it seems to be the go-to project! While in theory purchasing a home for a lower cost and then fixing it up can seem more affordable then splurging for a home that already has the latest features, buying a fixer upper can become an expensive and time consuming project. Here are some hidden expenses to look out for before buying a fixer upper.

Fluctuating Cost for Repairs
You will probably have a rough idea of the total cost for renovating your fixer upper, but until the work begins, it is hard to know exactly how much work is needed. Contractors will be able to give a rough estimate for the total renovation costs, but additional repairs may pop up once construction begins. You might also find that your initial plans for renovations may not be feasible, and going with different options might impact the budget you set. When planning out your renovation budget, calculating a higher estimate will make it easier to adjust to changing costs and keep you from going over budget.

Disposal of Construction Materials
The cost and labor of construction are typically factored into one’s budget before starting a big home renovation, but what about the construction items that remain after all work is done? Hauling away unused construction materials, or debris left from the renovation, can quickly become a sizeable expense. Even renting out a dumpster or trash removal service is an added cost to what can already be an extensive list of expenses. Before stocking up on construction supplies, try to get a good feel for what all will really be utilized to avoid having more materials to trash. If you are handling all repairs through an outside construction company, make sure to speak with them and find out what their policies for trash removal are.

Repairing Internal Structural Work
Major structural repairs can be costly as is, but are needed to ensure the home is fully functioning and safe to reside in. Oftentimes structural repairs such as plumbing and electrical, can be hard to initially detect. Such repairs can also be costly, but don’t typically increase the overall value of the home. Although plumbing and electricity are a priority, excessive repairs that are not necessary will only cost you more and have no guarantee of a return on investment.

Renovation Permits
Depending on the scope of your renovation, it is likely you will need to work with your city to acquire a permit before construction begins. Renovation projects must adhere to building, plumbing, and fire codes that are established for British Columbia. Having a construction permit ensures that all repairs will be in line with the building code. While it is necessary to have a permit, the process for acquiring one can often delay the start of construction and sneak up as an additional expense. Factor in a buffer time should the permit process take a while, and add the cost of obtaining a permit into your construction budget.

Labor Costs for Minor Repairs
If you consider yourself the next greatest do-it-yourself master, stepping up to the plate for simple home repairs can save from unnecessary labor costs. While it is smart to defer to the professionals for handling large construction projects, they aren’t really needed for projects like painting. If you do not feel comfortable getting your hands dirty and diving in to small repair projects, you can of course bring in construction workers to handle it, but be prepared of the additional costs for their labor. Roll up your sleeves and dive in where you can and save your money for the projects that truly require a professional.

Planning ahead for the unexpected is the best way to approach fixing up a house for residency or resale. Set a realistic budget, determine your must-have features, and save money by handling smaller repairs and you will soon have the home of your dreams.

Hidden Costs to Plan for When Purchasing A Fixer Upper by Haley Kieser