{"id":17008,"date":"2021-01-13T08:00:00","date_gmt":"2021-01-13T13:00:00","guid":{"rendered":"https:\/\/www.zolo.ca\/blog\/?p=17008"},"modified":"2022-01-04T12:33:22","modified_gmt":"2022-01-04T17:33:22","slug":"what-i-learned-buying-an-old-house","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/what-i-learned-buying-an-old-house","title":{"rendered":"What I Learned as a First-Time Home Buyer of an Old House"},"content":{"rendered":"\n\n\n

Buying your first home is both exciting, and at times, daunting. Every step of the process is new, and it’s likely one of the most significant purchases you’ll make in your lifetime. If you’re considering buying an older house with untold quirks and issues, you can be sure your stress levels will rise several extra notches.<\/p>\n\n\n\n

But for some people, fixer-uppers<\/a> are filled with charm and unique character that makes it worthwhile. That was my view when I bought my almost-a-century old house in 2016. I knew the 88-year-old fixer-upper would be more work and potentially much more costly than purchasing a suburban new build, but as long as I was diligent and careful, it believed it would be worth it.<\/p>\n\n\n\n

Unfortunately, the buying process and first year of homeownership didn’t quite go according to my plan. While I avoided some common pitfalls of buying a fixer-upper, several expenses, like replacing a faulty roof and an aging water heater, caught me by surprise. Here’s everything I wish I’d known about purchasing an old house as a first-time homebuyer<\/a>.<\/p>\n\n\n\n

How Does Buying an Old House Differ From a New Build?<\/strong><\/h2>\n\n\n\n
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Buying an older home is more complicated than buying new. Mechanical systems may be outdated. The property may require renovations, and inspections need to be more specialized and thorough, covering aspects unique to old homes like fieldstone foundations and ancient septic systems. Here are the top ways the buying process is different for an older fixer-upper home.<\/p>\n\n\n\n

1. Your List of Must-Haves Will Be Different Than if You Were to Buy a Newer Home<\/strong><\/h3>\n\n\n\n

Before you begin any house hunt, it’s a good idea to sit down and make a list of the features you are looking for<\/a> in your new home. Elements like your ideal location, number of bedrooms and parking spaces, and amenities should all be on this list.<\/p>\n\n\n\n

But many fixer-uppers don’t have modern amenities that are considered standard features in newer homes. With an older home, you might need to compromise. For example, my must-have list for my first home included air conditioning and a working fireplace. <\/p>\n\n\n\n

After viewing many older homes, I realized that my must-haves were out of my price range. I wanted an older home that needed some renovations so that I could build equity<\/a>. Still, the only older homes available that had the luxury of air conditioning and a working fireplace were ones that had been recently gutted and completely renovated. Air conditioning was unheard of when most of the homes I viewed were built, so unless previous owners updated the house, it wouldn’t have that feature. <\/p>\n\n\n\n

On top of that, most of the older homes I viewed had hearths or fireplaces, but they hadn’t been maintained over the years and weren’t operational.<\/p>\n\n\n\n

Since it was so tough to find an older home within my price range that had everything on my must-have list, I adjusted my expectations. Instead of requiring air conditioning, I needed a central forced air heat distribution system. This type of system would be easily convertible to an energy-efficient heat pump later on. Instead of finding a home with a working fireplace, I found one that had a defunct fireplace that I could rehab into a working hearth in the coming years.<\/p>\n\n\n\n

By getting creative with my must-have list, I was able to find a home in my price range, in my ideal neighbourhood, that checked most<\/em> of my must-have boxes. <\/p>\n\n\n\n

The first lesson I learned was that compromise and flexibility are essential to have if you are looking for an older home with character. The personality of a homebuyer is equally as important as the home.<\/p>\n\n\n\n

2. Never Skimp on the Home Inspection<\/strong><\/h3>\n\n\n\n

With any home purchase, it’s crucial to get a home inspection. With an older home, the home inspection could mean the difference between years of homeownership bliss and, well, have you seen The Money Pit?<\/p>\n\n\n\n

This classic 1986 comedy stars Tom Hanks and Shelley Long as a couple who attempt to renovate a newly purchased million-dollar home sold for a bargain $200,000. From the moment the couple takes possession of the house, it starts falling apart. Their plans to renovate it quickly devolve into a gruelling home renovation marathon wherein their shady contractor repeatedly assures them that the home will be completed “in the next two weeks.” While a home in disrepair might mean comedy gold on the silver screen, it can be a nightmare to live in real life.<\/p>\n\n\n\n

A home inspector can help identify issues like water damage, mould, faulty wiring, or a looming bank-breaking home repair like a crumbling foundation, an ageing roof, or a septic system on its last legs. Suppose your home is in a rural area. In that case, it’s also recommended that extra inspections for septic and well systems occur, as well as a review from a structural engineer if you observe any cracking around doors or windows.<\/p>\n\n\n\n

My home inspection cost $500 and took around two hours, and afterward, the inspector emailed me a detailed document containing everything he could find wrong with the home, including photographs. Now, four years later, I still reference that home inspection often. My home inspector identified several issues that my inexperienced eye missed completely, like a sagging roof, a water heater on its last legs, and a wet patch of drywall in the basement. I was able to use that information to decide whether I wanted to move forward with the sale. I chose to move ahead and used the issues found as leverage for a lower selling price, offering $20,000 under asking, with no conditions that the seller fix the problems before I took possession of the home. The previous owner accepted my offer, and my $500 investment netted me $19,500 in a reduced sale price.<\/p>\n\n\n\n

3. Be Prepared to Negotiate<\/strong><\/h3>\n\n\n\n

If your older home’s inspection reveals issues, it doesn’t necessarily mean you should immediately walk away from the sale. Minor problems are common in older homes, and it’s up to you to decide whether to walk away from the sale or negotiate a price reduction. As long as the real estate market in your province or city isn’t too hot, you can use the issues you uncover during the home inspections to negotiate a lower selling price. <\/p>\n\n\n\n

Hiring an experienced real estate agent can make this process a lot easier and less overwhelming to navigate as a first-time homebuyer.<\/p>\n\n\n\n

After my home inspection revealed several issues with water incursion through the roof, a wet spot of drywall in the basement, and a nearly defunct hot water tank, I had two options. First, I could require the seller to repair these issues before taking possession of the home. Second, I could negotiate with my seller to reduce the selling price to complete the repairs myself. I chose the second option, hoping the seller’s convenience would net me a lower purchase price. <\/p>\n\n\n\n

Negotiations like this were new to me, and the back-and-forth process was surprisingly suspenseful, but eventually, I purchased the home for $20,000 under the asking price. If you find yourself in this position, you too may be able to negotiate money off the selling price, although some sources<\/a> suggest $10,000 is closer to the average.<\/p>\n\n\n\n

Top Tips for Buying Your First Old House<\/strong><\/h2>\n\n\n\n
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Before the house-hunting process began, I had always known that I would buy an older property with the character and charm (and quirks) that came with it. That said, here are some lessons I learned that would make your home buying process more manageable.<\/p>\n\n\n\n

1. Get Quotes on Everything<\/strong><\/h3>\n\n\n\n

If you’re planning on buying a fixer-upper that needs some modernizing, I highly recommend getting quotes on your planned renovations before finalizing the home purchase. Knocking out a wall, updating bathrooms, or upgrading electrical systems is much easier said than done. As a first-time homebuyer, I had no idea just how much money and time go into renovations \u2013 it’s not nearly as easy as it looks on HGTV!<\/p>\n\n\n\n

For example, when I initially purchased my home, I had dreams of knocking out a load-bearing wall on the main floor and gutting the kitchen. After receiving quotes from several reputable contractors in the $40,000 – $50,000 range, I lowered my sights to a less ambitious kitchen renovation that still opened up space and featured all-new everything (albeit from IKEA), but should cost just $20,000. <\/p>\n\n\n\n

I also thought I would tackle this renovation almost immediately after purchasing the home. Still, after prioritizing other pressing projects like the roof as mentioned earlier, air conditioning, and hearth rebuild, I am just now approaching the kitchen renovation almost four years into homeownership.<\/p>\n\n\n\n

Getting quotes and timelines from contractors<\/a> will help you determine just how feasible your modernization plans are with your timeline and budget and will help you make an informed decision on whether this home is a worthwhile purchase.<\/p>\n\n\n\n

2. Determine Your Comfort Level With Hazardous Materials<\/strong><\/h3>\n\n\n\n

Lead paint, asbestos, and radon are all hazardous materials that you commonly find in older homes. The general rule of thumb is that if you don’t disturb these materials, they don’t pose a hazard to the home occupants. Still, it is unlikely that you’ll go through your entire period of homeownership without an encounter of the like. If the idea of dealing with these materials makes you squeamish, an older property might not be the best choice for you. <\/p>\n\n\n\n

I’ve encountered both lead paint and asbestos during my home renovations. While the first encounter was a little nerve-wracking, dealing with these substances is part of life as an old homeowner. In both cases, I extensively researched proper containment methods online, consulted with my local municipality for disposal procedures, and proceeded with one small project at a time until I gained experience dealing with these materials.<\/p>\n\n\n\n

If you aren’t comfortable dealing with these materials yourself or have small children in your home, choose a contractor who has experience renovating old homes to ensure proper containment procedures are followed for your renovation. <\/p>\n\n\n\n

3. Don\u2019t Buy at the Top of Your Price Range<\/strong><\/h3>\n\n\n\n

The housing market in most parts of Canada is hot, and prices are rising rapidly. Due to these pressures, you might feel tempted to buy at the very top of your price range. I don’t recommend this if you are purchasing an fixer-upper because you’ll need to leave room in your budget for unexpected costs like higher heating bills or other repairs. <\/p>\n\n\n\n

Remember, older homes are full of charm and character, but they need extra care at times, so you must build that buffer into your monthly budget. Standard rules of thumb suggest to budget 3% of your home’s purchase price for maintenance. Based on my experience, that suggestion is very accurate. In my case, where I am improving my home rather than regular maintenance, I increased from 5% to 7%.<\/p>\n\n\n\n

Is Buying an Older Home as a First-Time Homebuyer Worth It?<\/strong><\/h2>\n\n\n\n

I bought my first home in 2016. It was 83 years old at the time, and I was 26. Over the past four years, I’ve upgraded the electrical system, replaced the heating system, fixed the roof, added windows, overhauled the landscaping and deck, rebuilt the fireplace, replaced flooring and appliances and upgraded the plumbing. I’ve tracked nearly every penny spent, and overall I’ve shelled out about $30,000 renovating my home, which made negotiating that $20,000 cost reduction all the more critical.<\/p>\n\n\n\n

I’ve painted almost every surface and spent hours scraping years of paint from brick, wood, and metal. It’s been a lot of work, but I’ve loved almost every minute of it. Almost! I did not love digging old nails out of my garden. <\/p>\n\n\n\n

Buying and renovating a fixer-upper is a lifestyle choice, and if it sounds like one you want to make for yourself, following the advice above will make the buying process a little smoother.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tips to help you buy and fix up that old house on a budget<\/p>\n","protected":false},"author":59,"featured_media":17009,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[15155,15156],"guide":[],"class_list":["post-17008","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying","tag-buying-an-older-home","tag-fixer-upper"],"acf":[],"zolo_excerpt":"","_links":{"self":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/17008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/comments?post=17008"}],"version-history":[{"count":8,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/17008\/revisions"}],"predecessor-version":[{"id":20024,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/17008\/revisions\/20024"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media\/17009"}],"wp:attachment":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media?parent=17008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/categories?post=17008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/tags?post=17008"},{"taxonomy":"guide","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/guide?post=17008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}