When it comes to buying and renovating a deteriorating or dated property, there are two kinds of home buyers in the world: those who have the wherewithal, and those who don’t. People are generally pretty good at determining which category they fall into. Do-it-yourselfers are usually highly motivated and have some experience tackling home maintenance and beautification challenges. And most of us are self-aware enough to realize that if we don’t have the skill or drive it takes to charge in and transform a “home with potential” into the showplace it deserves to be. 

For the seasoned DIY-er, the big question really comes down to determining whether a property is worth the investment. Will there be a good return on your venture once the house is spruced up and fulfilling its unrealized potential?

Here are a few tips for identifying a property worth fixing up:

1)    Invest sensibly. Unless you have some serious experience in construction, you should look for a home that is essentially structurally sound – there’s a big difference between removing a dividing wall between rooms and shoring up a damaged foundation or a sagging roof. The floor plan should make sense and cosmetic improvements should give the home the real boost it needs. An inspection can turn up potentially drastic plumbing, electrical, or structural issues. 

2)    Do your research.If you’re looking to reface a home to achieve a higher resale value, it’s also important to know about the neighborhood. A real estate agent can provide you with comps (comparable recent sales in the area) in order to determine what type of resale value you might expect once you’ve spruced up the place. Your agent can also tell you whether sales in the surrounding area have been sluggish or robust.

3)    Enlist help. It’s a good idea to consider partnering with a contractor. If a home is in particularly bad shape or does have structural issues, there might be aspects of it that you are unable to rehab yourself. A contractor can give you estimates for making any larger-scale changes. Factor this number into the equation when you are looking at home price and deciding whether to buy. 

4)    Create a budget. Determine what you are willing to spend to effect change in a dilapidated or dated home. A thorough examination of a home’s problems will allow you to decide whether you think that its shortcomings are largely cosmetic or whether more radical changes will be necessary. Are you prepared to pay to overhaul the plumbing, replace a furnace, or install new windows? Or are you hopeful that fresh paint, refaced cabinets, and some kitchen and bathroom updates will result in the upgrade you are looking for?

Whether you’re rehabbing a home with new fixtures and appliances, modern upgrades, and your own personal sense of flair or style or you’re willing to completely renovate a deteriorating property with new systems and even structural modifications, it can be vastly rewarding to recreate a home from the bottom up. Just make sure that you know what you’re getting into and that an agent can help you understand the vagaries of the real estate market so that you make a wise investment.

Good luck! 

Would you like to know more? Visit www.andoverhomes.com for more information.