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The ability to renovate a home is a great opportunity for investment purposes or to obtain the home of your dreams at a much lower price. However, there are a few important considerations before buying a home that needs renovating.

Has the Home Been Vacant?

Length of vacancy can make a difference in the shape of a house. The longer a home sits vacant the more issues can arise.

Things like plumbing that hasn’t run for a year, or rodents that have infested in a warm, empty home are just a couple of possible problems.

For the purpose of renovating, this may not be a deal breaker for you as a buyer. However, it’s important information to have so you know what you’re getting into.

Focus on the Bones

If someone has prepared your possible future renovation for a showing, it may look better than it actually is.

Shiny new appliances and a few coats of paint make a huge impact on a home. Pay attention to the bones of the house before getting too excited about how great it looks.

Cosmetic issues can always be changed. Things like the foundation, wiring, or plumbing are a bigger issue. Have a thorough inspection of everything.

Brave the Basement

When it comes to renovating, most buyers aren’t looking at pretty new homes; they are seeking older homes that need work. Have you ever been in the basement of a much older home, dirt floor and all? There’s no getting around it; they can be creepy.

Don’t assume the basement is just a basement and is probably fine. Brave the basement, creepy as it might be, to check for water issues, foundation cracks, and mold.

Know Your Possible ROI

Crunch the numbers and understand what the possible return on investment (ROI) would be should you decide to sell after renovating.

This is especially important when renovating for the purpose of flipping the house as an investment.

If not, it may still be helpful to know as you put money in, how much money you could get out of the renovated house if you sold down the road.

Who Will Renovate?

Are you doing the renovations yourself or will you hire a contractor? If the latter, have a contractor lined up and get their opinion as you house hunt, if necessary.

Consider the cost of hiring help as you choose the right property to buy.

Plan ahead and take into account the considerations before buying a home that needs renovating and you’ll be on your way to an exciting new home.