What to Consider When Buying a Property to Renovate

0
126
Buying a Property to Renovate

With more time spent at home in the past year, home renovations have skyrocketed. Did you know that 3 out of every 4 homeowners in the US completed some sort of home improvement project within the last year?

Home renovations can be a massive but rewarding undertaking. Are you currently looking at buying a property to renovate?

Continue reading for 5 things to consider before starting your home renovation journey.

Inspect

Making sure to inspect the bones of a property prior to purchase is one of the most crucial steps. Certain upgrades may have already been made, but what does the electrical look like? The roof? The HVAC?

These items tend to get overlooked at the outset and can end up costing the most. Making sure to complete a home inspection prior to your home renovation can help you avoid potentially hazardous issues down the road.

Renovations

When looking at buying a renovation property, it’s important to keep in mind any future renovations you want to make, as well as current.

When planning your renovations, it should be noted that any renovations made will affect the future value of your home. Certain renovations can increase a home’s value, while others can negatively decrease the value.

Spending your hard-earned money on well-thought-out property renovations that will eventually increase the resale value of your home. Thus, saving you money in the long run.

Timing

Know when it’s time to hire a professional. Crucial installations like electric or plumbing should be left to the professionals. It may cost more upfront but it will save you from a stressful, time-intensive, and expensive situation.

In addition, delays are inevitable. A home renovation is a massive undertaking, and the planning will likely take longer than expected. It’s important to keep in mind things like permits, approvals, and licenses, which can all be time-intensive to receive.

Neighbors

Your new neighbors can be not only a great source of information as to the market but they’ll also be able to provide information on the neighborhood in general.

In addition, if you’re deciding on moving into your renovated property, it can be helpful to know that the people living closest to you will be those you can get along with.

Budget

We saved the best for last, as one of the most important items to note when renovating a property is budget. While some may opt to pay out of pocket for a renovation, others may opt for a renovation loan or a rehab loan.

Depending on the number of renovations you’re looking to make and how quickly you want to make them, a rehab hard money loan is one option that may be perfect for those purchasing a distressed property.

As mentioned above, a home renovation is a massive undertaking of both time and funds. Having the necessary financial resources to complete your renovation will ease the burden of such an undertaking.

Looking for a Property to Renovate?

Choosing a property to renovate can be quite the undertaking, but if you think it’s time to take on a property renovation, be sure to keep these tips in mind for a smoother process. 

Have any additional real estate or investment questions? Be sure to check out our Real Estate section for more information.