Before You Buy Your Next Home – Renovations to Make your Next House into a Home

As you, the buyer, might say, ‘This is the best house in the location I really want,’ but realize you will need to do some improvements to make the house into your home.

Remodeling may be a labor of love, but it’s also an investment that can seriously boost the value of your home.   Given the myriad of decisions to be made, I promise to help you stay sane and on track.

Realtor Associate with remodeling/renovation experience – I will give you new + different perspectives while opening you to the possibilities of a “diamond in the rough” house that with creative thinking with reasonable investment, can give you the home you had hoped for.

After thorough discussions with you centered on the estimated renovation costs and if the costs are supported by the market value of recent home sales in the area, you will then be able to make an informed decision on whether to buy the house. Be careful not to make extensive renovations and then price yourself out of the neighborhood. My advice is to do those renovations which will give you a return of investment, taking into account how long you expect to be in the house to enjoy the fruits of you renovations.

Projects get you the most bang for your home renovation dollars– It may not be nearly as sexy or fun as adding a chef’s kitchen or glam bathroom, but attic insulation gets the top spot. The next best-paying renovation on the list is manufactured stone veneer for the outside of your house, offering a respectable 92.9% return. Meanwhile the home improvement project that reaps the worst ROI is the addition of a bathroom, at 56.2%.  That said, the “added value” of an extra bathroom for anyone who’s ever had to wait their turn for one is, of course, priceless. The take-home lesson is that less is more– lower-cost projects generally reap bigger returns.

A homebuyer who wants to remodel/renovate – Consider if the desired changes are structurally possible; how much will it cost; and do you have to finance the remodeling expense. Approach a buy-remodel with a carefully organized series of steps.

You might have a “dream” of the location and type of home. Detail ensures accuracy and a comprehensive picture, so it would be best if you knew the specifics of the complexity, cost and feasibility of renovations, especially if financing will be necessary– all before making an offer on a home.

Depending on the extent of the renovations it might be worthwhile to possibly engage architects and renovators. I can accelerate the buying process by giving you my take and if you still need them, the names of architects and renovators. Keep in mind that Sellers aren’t always cooperative when a potential buyer asks to have an architect or contractor inspect the property before making an offer.

Estimate the price tag – The majority of buyers will need a loan to both purchase and remodel. With a mortgage preapproval, a lender examines a borrower’s income and other factors to determine the maximum loan amount. You might want to “work backwards,” using the maximum dollar amount you want to spend for the renovations; then you choose the design and materials within your budget.

Figure the financing – The lending institution bases the loan amount on the value of the home after renovations are complete. Sellers aren’t likely to entertain the renovation-buyer’s offer seriously if it’s “a brand-new listing with lots of interest.” But when a listing lingers, it’s easier.

Now………..on your mark, get set, buy!!!