When you’re driving around looking for a house to renovate, how can you tell which ones will be a money pit and which ones will be a profitable endeavor? It’s not always easy, but there are some telltale signs that a house might be a good candidate for renovation. This blog post will discuss some things you should look for when trying to spot a fixer-upper.
Look for Houses that Have Been on the Market for a While
If a house has been on the market for months or even years, there’s probably a reason. It could be that the asking price is too high, or it could be that the house needs some work. Either way, it’s worth taking a closer look.
If you go outside your budget, you’ll covet something you can’t afford. This might put you in a financial bind or cause you to be dissatisfied with what you can really purchase. If you’re satisfied with what you find at the lower end of your budget, there’s no need to go higher.
Remember that spending an extra $10,000 on a home is not just the 10,000; with interest included over time, it could come out to double or more. You might as well put that money towards something else.
Look for Houses with an Odd Layout
Houses with unconventional layouts can be challenging to renovate, but they can also be very rewarding. If you’re up for the challenge, an oddly-shaped house can be a great candidate for renovation.
Oddly-shaped houses can be a challenge, but they can also be very rewarding. If you’re up for the challenge, this can be a great candidate for renovation. You’ll likely save money on the purchase price and have the satisfaction of fixing it yourself. In most cases, fewer people compete for fixer-upper homes, meaning you’re more likely to get the house you want at an excellent price.
Houses that need updates are usually much less expensive than houses that need major structural work. If you’re looking for a bargain, this is the house you should be looking for.
Look for Houses in Need of Major Repairs
Houses that need major repairs like a new roof or foundation work will not be easy projects, but they can also be very profitable. If you’re considering taking on a project like this, ensure you have the time and money to invest in doing it right.
A kitchen makeover, extending rooms, demolishing walls, or rebuilding the roof are all examples of major repairs. It would be beneficial if you had a professional and experienced general contractor to assist you in evaluating major repairs. Purchasers frequently underestimate the costs and time involved in a renovation project.
Homes that need major repairs can be a great opportunity for experienced investors who are up for a challenge. These homes are usually much less expensive than houses that don’t need any work, so you have the potential to make a great profit. Just be sure you know what you’re getting into before you take on a project like this.
You may also do updating from a new roof to installing triple-glazed flat roof skylights, new windows, updated plumbing or electrical, a new furnace, etc. The list goes on and on. If you’re not handy or don’t have the time to do the work, you’ll need to factor in the cost of hiring someone to do it for you. This can add up quickly, so be sure to get a few estimates before making an offer on a fixer-upper.
Find a Safe Neighborhood
Frequently, houses that need work are also in less-than-desirable neighborhoods. This could be due to the crime rate, the quality of schools, or the overall feel of the area. Suppose you’re not comfortable with the neighborhood. In that case, investing in a fixer-upper is probably not worth your time and money.
It’s not worth your time and money to invest in a fixer-upper if you’re not comfortable with the neighborhood. Make sure you research the area before making an offer on the house. A safe neighborhood will be a more enjoyable place to live and will also be easier to sell when it’s time to move on.
Use an Agent
After you finish “shopping” for your dream home, create a list of the potential homes you’re interested in. Then, find an experienced real estate agent or broker to help you make an offer and negotiate the price.
When looking to purchase a fixer-upper, enlisting the help of a real estate agent can be incredibly beneficial. A good agent will assist you in negotiating a fair price and things like a home inspection and a reputable contractor. Additionally, as agents are generally familiar with the areas where such properties are more prevalent, they can guide you toward neighborhoods that better fit your needs.
To Summarize
There are many factors to consider when deciding if a house is a good candidate for renovation. Take your time and do your research so that you can find the right project for your skills and budget. You can turn any fixer-upper into a beautiful home with careful planning and execution!
