Buying a Fixer-Upper: The Essential Checklist
1. Don’t Skip the Home Inspection
Purpose: A home inspection helps uncover major issues such as foundation problems, plumbing leaks, roof damage, or electrical hazards. These issues may not be visible at first glance but can be very costly to repair.
Action: Hire a licensed, experienced home inspector familiar with Toronto’s older housing stock. Homes built in the early 20th century or earlier may have hidden issues like knob-and-tube wiring or lead pipes, so a thorough inspection is essential.
2. Consult a Contractor
Purpose: Contractors provide insight into what’s realistically possible and whether the renovations you envision are feasible. They help you understand the scope of work and potential challenges.
Action: Bring in a licensed contractor with experience in Toronto’s building codes and the challenges of renovating older homes. They’ll clarify what’s achievable, what needs adjustment, and what restrictions may exist—especially in heritage districts.
3. Estimate Renovation Costs
Purpose: Accurately estimating renovation costs ensures you’re financially prepared and helps prevent underbudgeting. Knowing the costs upfront allows you to plan properly and avoid surprises.
Action: Ask your contractor for a detailed cost breakdown including labour, materials, and potential hidden expenses. Toronto’s competitive construction market often results in higher-than-expected pricing, so budget for contingencies. Get multiple quotes.
4. Check Permits and Zoning Laws
Purpose: Many renovations require permits to ensure safety and code compliance. Skipping permits can result in fines, forced removal of work, or future issues when selling.
Action: Research zoning bylaws for the neighbourhood and confirm required permits with the City of Toronto. Heritage properties may require additional approvals, and certain changes may be prohibited. Work with a contractor or architect familiar with Toronto’s policies.
5. Determine Financing Options
Purpose: Financing a fixer-upper is different from financing a move-in-ready home. You need to plan for both the purchase price and renovation costs.
Action: Explore renovation financing options such as traditional mortgages, personal loans, or a HELOC if you already own a home. Speaking with a mortgage broker is the best way to understand what options are available for both the purchase and the improvements. They can help you determine which financing structure works best for your goals and long-term budget.
6. Budget for Unexpected Expenses
Purpose: Renovations often reveal unforeseen issues such as water damage, outdated wiring, or structural problems. A contingency budget prevents financial strain.
Action: Set aside 15–20 percent of your renovation budget for unexpected costs. In Toronto’s fast-moving market, material and labour costs can fluctuate, making a buffer essential.
7. Consider Resale Value
Purpose: The right renovations can significantly boost a home’s value. Some improvements offer higher returns than others, especially in fluctuating markets like Toronto.
Action: Work with a local real estate agent to understand which renovations provide the strongest ROI. Renovating in growth areas or near upcoming infrastructure projects—like new subway stations—may increase resale value.
8. Plan a Timeline
Purpose: Renovations often take longer than expected, especially in a busy city like Toronto. Contractor availability, permit delays, and seasonal factors all affect timelines.
Action: Build a realistic renovation timeline with your contractor. Account for delays related to permits, inspections, weather, and construction backlogs. Flexibility is key.
9. Finalize Your Offer
Purpose: With inspection, cost estimates, and budgeting complete, you can make a well-informed offer. Toronto’s competitive market requires strategic decision-making.
Action: Use the information gathered to submit a fair, informed offer. If the property needs major work, negotiate based on renovation costs or request repairs before closing. A local agent can guide you in competitive situations.
10. Manage the Renovation Process
Purpose: Renovations require ongoing oversight to keep the project on time, on budget, and aligned with your expectations.
Action: Regularly check in with your contractor to confirm progress, budget, and required inspections. Significant changes may require updated permits or city notifications. Monitoring the process closely helps prevent mistakes or delays.
Project Estimate Costs
Kitchen renovation: $15,000–$60,000+
Bathroom remodel: $15,000–$30,000
Flooring: $5–$15 per sq. ft.
Roof replacement: $6,000–$20,000+
Electrical upgrade (incl. knob-and-tube removal): $5,000–$25,000
Plumbing replacement (full system): $15,000–$30,000
HVAC system: $12,000–$20,000
Foundation repairs: $20,000–$40,000+
Waterproofing (exterior): $80–$150 per linear foot
Fence installation: $40–$100 per linear foot
Window replacement: $800–$1,500 per window
Removing a structural wall: $5,000–$15,000
Full gut renovation: $150–$300 per sq. ft.
Asbestos or lead paint removal: $2,000–$15,000
Masonry/brick repointing: $25–$50 per sq. ft.
Insulation upgrade (walls/attic): $2,500–$10,000+
Permits and drawings (structural work): $2,000–$8,000+
Driveway replacement: $5,000–$15,000
Landscaping and grading: $3,000–$20,000+
Basement underpinning: $80–$150 per sq. ft.
New deck installation: $6,000–$20,000+
Drywall replacement/patching: $2–$5 per sq. ft.
Full-house paint: $8,000–$15,000+
