Are you a fan of fixer-uppers? While they are great for saving money, they aren’t always worth the trouble. When is a house worth renovating? Is it better to buy one that doesn’t need any renovations? Whether you are looking at houses for sale or improving your own, some upgrades are worth the time and money.
If you enjoy old houses, the idea of buying one that needs a little attention can be irresistible. If you find a home in a good neighborhood, you may be able to make huge profits during resale. Here are a few things to keep in mind when deciding if a house is worth renovating.
1. Do the Math
How much are you willing to spend on renovations? Do the numbers make sense? Add up the total cost of renovation after assessing the condition of the house. The estimate must include labor, materials, and everything else. Make it as strict and comprehensive as possible. Once you have a number in mind, subtract it from the potential market value of your house. Deduct ten percent for unforeseen issues and inflation. It will leave you with your offer number.
Your real estate contract should always have an inspection clause. The inspection helps you determine if the house is worth buying and renovating. It can help you avoid a bad deal.
If a house requires significant structural improvements, you are better off leaving it alone. Foundation upgrades, plumbing overhauls, and extensive roof work are costly. They don’t improve the value of a house and are, therefore, not the best investments.
2. Possible DIY
If you can handle most of the renovation work without professional help, the house may be worth buying. Whatever renovations are needed, pitching in and doing the work yourself is the most affordable option. Fixer-uppers are gold for DIY fans. They help you save a lot of time and money. Some renovations that you may be able to handle include painting, hanging new cabinets, and replacing windows.
Consider the amount of time it would take to complete these renovations. While some of them seem easy, they may take several weeks or months to complete. Note that mistakes or delays on your part could wipe out all your gains from the project. DIYs are only appropriate if you know what you are doing.
3. Cosmetic Improvements
The best fixer-upper projects pay because only cosmetic improvements are needed. They include floor refinishing, paint touch-ups, and drywall repairs. These costs make a lot of sense when you resell your house, and this resource may help you learn about them. Consider getting new light fixtures, window shutters, and updated bathrooms.
The upgrades could help bring the house in line with others in the neighborhood. However, you must be careful not to over-improve. Suppose you want to achieve the maximum resale value. In that case, your remodeling investments must not increase your house value over 15 percent higher than the median sale price of others in the neighborhood.
4. Consider the Front Yard
Renovating the front yard of a house is always a good idea. If you find a fixer-upper that mainly needs renovations in the front yard, it may be a good investment. First impressions matter and your front yard is your first chance to make a lasting first impression. The most common upgrades include lawn care, landscaping, changing the garage door, and replacing your front door. These renovations are a good use of your money. They are simple and could increase the resale value of your property.
Most realtors advise that you improve the curb appeal of your property. When you resale your house, you can recover every cent you spent.
5. Be Wary of Scams
Many people get through life with the fear of being ripped off. Unfortunately, it is a fear that can quickly come true in the real estate world if you aren’t careful. When taking on a huge home project, you must be cautious. What seems like a minor renovation could turn into a six-figure project. Home improvement scammers prowl on unsuspecting buyers. They use the promise of a big payday and huge savings to get to you. Sometimes, your home doesn’t even need renovations.
Do lots of research before hiring a contractor. While there are many of them in the market, they aren’t always appropriate for your needs. Work with contractors that you seek out. Not those that seek you out.
Does remodeling your home sound like a good idea? It could be. However, you have to be careful. If you read popular remodel sites or watch home shows, you may think that remodels are easier than they are. Home remodeling is complicated. It is not for everyone. However, it may be a good idea if you are good at DIYs, won’t spend a lot on it, or are wary of scams.