The beauty and many amenities Etobicoke offers have made it one of the fastest-growing areas in the GTA. As a result, finding the perfect home here is never easy, especially during the housing shortage we’ve experienced over the last few years. At its worst, the housing supply dried up to just two weeks’ worth of inventory, which caused fierce competition from the many hopeful buyers looking for a home. From March to September, the market has opened up slightly because of the series of interest rate hikes by the Bank of Canada.
As of September, we now have about 1.5 months’ worth of inventory. By traditional standards, this is still a crunch, but it is a massive improvement from the beginning of the year. It doesn’t mean your home search is going to be easy; just easier. But what if you can’t find the right home even though more listings are available? One solution may be to purchase an old house and perform a major renovation or even a complete teardown. Here are some of the steps to help you find your diamond in the rough.
Create Your Vision
When searching for a potential house, remember that you can change almost everything except the lot size and the location. You can add an addition to make the home bigger. You can knock down non-load-bearing walls to create an open-concept layout. You are only limited by your access to funds, your imagination, and the city’s bylaws. Creating a vision of what you want in your new home will guide your search. You may not get everything you want, and being flexible will increase your chances of finding the right property. Like anyone searching for a move-in ready home, it helps to list everything you must have or would like to have in your home. The following checklist will help you get started:
- What do you want your perfect home to look like?
- How many bedrooms and bathrooms should it have?
- What square footage are you looking for?
- What housing type do you want (bungalow, 2-storey, back split)?
- What size lot do you need?
- Where do you want to live?
- Does the home need to be accessible?
- How old is the home?
- What upgrades have been done in the past?
Do you want more information before buying a home in the current market? These other articles can help:
- Buying a Home in Etobicoke During a Shifting Market
- Is Toronto Heading Towards a Buyer’s Market
- Changes to the Stress Test: What Buyers Should Know
The clearer and more realistic you are about what you want, the more likely you will be able to find a suitable home for your renovation project.
Determine a Firm Budget Range
One of the biggest mistakes buyers make is underestimating how much their desired renovations will cost. With the rising prices of materials and labour, it can be more expensive than you realize to make all the upgrades and repairs you envision.
Some houses will need more work than others. You’ll need to consider how much you’re willing to spend on the property while having enough left to rebuild it to your specifications. Your real estate agent can recommend tradespeople to provide accurate quotes to help set your budget.
To avoid overspending, calculate your costs carefully, and don’t forget about expenses like property taxes, permit fees, and closing costs. Adding a cushion to your budget will help you be prepared for the unexpected.
Look Past the Surface Appearance
Clear expectations are critical when searching for your hidden gem. Even when planning a significant overhaul, it can be hard to commit to a home when you don’t like its appearance. Before visiting potential houses, sit down with your buyer agent to discuss what is important to you.
Creating a plan ahead of time will help you avoid making an emotional decision and purchasing a property unsuitable for your goals. Plus, you won’t walk away from the perfect opportunity because of a cosmetic imperfection.
Pay Attention to Structural Issues
While you want to look past cosmetic flaws, foundational or structural issues can be a deal breaker. Before making an offer, walk through the home with a real estate agent and examine the property thoroughly.
Cracks in the walls, soil receding away from the house, and windows or doors that won’t shut properly could indicate serious problems with the house. Every issue can be repaired, but the cost isn’t necessarily worth it unless you can purchase the home far enough below market value.
When buying an older home or a fixer-upper, it’s advisable to include a home inspection condition. If it turns out that the house has severe issues, you will be able to back out of the purchase without losing your deposit.
Looking for ideas to decorate your newly-renovated home? Here are some ideas to inspire you:
- Redesign Your Home Decor With One Trip to Your Local Hardware Store
- 6 Design Trends Making a Comeback in 2022
- 5 Luxury Upgrades That Can Add Value to Your Home
Work With a Local Real Estate Agent
Did you know that many properties available for sale are not publicly advertised? You won’t necessarily find the home you’re looking for by browsing online. A local real estate agent can be your best resource when accessing hard-to-find listings and negotiating the best possible price.
Best of all, a local real estate expert will protect you by helping you understand your budget and ensuring you find the right property to suit your needs.
Are you ready to find your diamond in the rough in Etobicoke? Let us help! Reach out to us today, and we can start creating a customized strategy for you.