INTERVIEW: Chris Andresen with Andresen Homes
Urban Haven: Chris please provide some context on your credentials and experience in home construction
Chris: Let’s first clarify that we’re discussing residential construction and renovation, not commercial or other types of building. Also, my comments are based on my own experiences and views. My background includes education and experience in farming, auto mechanics, electronics engineering, telecommunications, and project management. My expertise in residential construction, however, comes from hands-on, on-the-job experience, working with tradespeople on both new builds and renovations over the past 40 years. While I’m not a professional in any one trade, I have a broad knowledge of the various trades involved in homebuilding and renovation.
Urban Haven: Are you able to explain the differences between low and high-quality building in a structural sense:
Chris: The difference between low and high-quality construction can be considered in two ways:
- Adherence to current building codes
- The age of the home
1. New Construction
New residential construction is typically done by licensed tradespeople who are familiar with current building codes. New hires would work under the guidance of an experienced tradesperson, ensuring the work meets or exceeds local building codes. Construction also requires permits, and inspections at various stages help ensure that the work is done properly. Since 2014, new homes are also covered by a new home warranty, which further protects the buyer. Despite this, issues can still arise due to poor workmanship that inspectors might miss.
2. Renovations
The biggest risk to structural quality typically arises during renovations, especially in older homes. The older the municipality and home, the more potential problems you may face. These can stem from outdated building codes or past poor workmanship. When renovating, it’s critical to decide whether to properly fix an issue or simply cover it up. Major structural changes, like removing load-bearing walls or altering the building envelope, require permits and may need the consultation of a structural engineer. While building inspectors do catch some mistakes, they can miss things, especially when the work is done by unlicensed or inexperienced individuals.
Urban Haven: What is the impact of low-quality renovations on flipped houses:
Chris: In the case of flipped houses, assuming the work is done to code and inspected, it should generally be fine. However, problems arise when unlicensed contractors or homeowners perform work without following code or getting inspections. These risks are especially prevalent in flipped houses, where the goal is often to make quick, low-cost improvements to maximize profit. If structural work is done improperly or not up to code, it can cause major issues down the line for the buyer.
Urban Haven: What are the risks of purchasing a “Traditional Flip” with low-quality renovations:
Chris: Anyone can buy a house with the intent of renovating and flipping it, but that doesn’t mean the work is always done well. Many renovation issues are non-structural and don’t require permits. In Alberta, homeowners can pull their own permits for building, plumbing, and electrical work, as long as they do the work themselves. However, a licensed contractor must be hired to pull permits for work done by others. In either case, poor workmanship or lack of knowledge can lead to serious issues. Sometimes, the desire to cut costs leads to cutting corners in quality.
You can usually gauge the quality of a renovation by the finishings, but that’s not always reliable. There may be hidden issues that aren’t visible at first glance. This is why hiring a qualified inspector before purchasing a flipped home is a good idea. They can point out the quality of the work and any potential red flags beyond the obvious cosmetic details.
Urban Haven: What are considerations for new builds and balancing tradition with modernization:
Chris: When it comes to new communities, most homes are built by a set group of builders, with standardized designs. In the estate sections of these communities, there may be more opportunities for custom builds, but they come with a higher price tag. Alternatively, buyers can look for older homes in established neighborhoods, either demolishing them to start fresh or renovating them.
In older communities, there’s often a tension between maintaining the traditional look of the area and introducing modern designs. Striking a balance is key: You want to respect the aesthetic of the neighborhood while also offering something fresh and desirable for potential buyers. It’s a matter of finding what works within the existing community dynamics while ensuring the new construction fits modern needs.
Urban Haven: What are key aspects when deciding to take on a new project:
Chris: Here are a few rules to follow when buying a property for renovation:
- Make your money when you buy: Don’t overpay for a property, or it’ll be difficult to recoup your investment after the renovation.
- Buy the worst house in the best neighborhood: Location is everything. You can always change the house, but you can’t change the location.
- Location, location, location: Look for properties in growing cities or towns, in good neighborhoods with amenities like green space or water access.
- Know your market: Be mindful of market conditions. If you renovate during a bull market, but take too long, you may end up in a bear market by the time you’re finished.
- Know your numbers: It’s crucial to have financing in place to cover both the purchase and the renovation costs.
Urban Haven: How long do these projects normally take?
Chris: An experienced renovation company can typically complete a project in a few months. For me, though, major renovations take a few years because I prefer to do most of the work myself to ensure quality.
Urban Haven: What are the most challenging aspects of renovations:
Chris: Everything is challenging, but the hardest part is knowing how far to go with a renovation. Personally, I tend to overdo it, sometimes tearing everything down and starting from scratch. While that may not be the most profitable approach, it does ensure a high-quality result.
Urban Haven: What are the most valuable lesson learned from these projects:
Chris: The most valuable lesson for me has been the importance of balance. While I enjoy building and renovating, I often prefer to start with a clean slate and build new. Major renovations can be a headache, and it’s sometimes faster and easier to construct a new house with modern technology than to update an old one.
Urban Haven: What is the unique current opportunity for buyers:
Chris: I’m offering buyers the chance to purchase a home in the finishing stages, allowing them to put their personal touch on the design and select colors and finishes.
However, there are challenges with this model:
- Buyers often can’t visualize the finished product until it’s completed. Most people prefer a turnkey home, which is why builders showcase model homes to give buyers a clear idea of what they’re getting.
- Financing is tricky. Banks generally won’t lend on an incomplete home unless it’s habitable. Some banks allow draw mortgages, but another option is to secure private funding until the house is finished, then refinance with a bank.
Interested in getting in touch with Urban Haven or Chris Andresen? Have more questions? CONTACT US
Tanya and Kelly with Urban Haven Real Estate Group at CIR Realty
587-415-1705 or urbanhavengroup@gmail.com