| Home Renovation and Remodeling Tips, Advice, Information and Ideas. |
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| Choosing a house to renovate, flip or remodel.
There are a number of questions to ask when looking for a house to renovate. Identifying what needs to be done and how much it will cost is key. To date, I've purchased two houses that I have chosen to renovate. One was a newer house built in 1992; the other was built in 1934. New or old, pristine or dilapidated, there are a number of questions to ask yourself before buying a house to renovate. I’ve put together some of these key questions that will hopefully help you make the right decision. 1. What “needs” to be done, and how much will it cost? Do all of the systems work properly? (Heating and cooling systems, electrical, plumbing, appliances, etc.) Does the house need a new roof, painting, structural work or anything that will cause further damage to the house if not repaired soon? Don’t let any of these discourage you from buying your dream house, but be sure to note the cost and plan on spending it right away. 2. What do you "want" to do, and how much will it cost? What will it take to make you and/or your significant other happy living in the house? What rooms “have” to be painted? What carpet has to be replaced? What addition has to be built? This is important because all renovation projects take time and money. You will have to live you normal life while these things are getting done. This means dirt, dust, using the small bathroom, spending more than you are used to and more. If you are like me, the 1970’s wallpaper in the bathroom is just not something you can wake up to every morning. This means that it will have to be taken care before you can truly be at ease in your home. 3. Will you get your money back if you decide to sell it? It’s important to know how much you will or plan to spend when renovating. It will most likely end up being more than your estimate. More importantly, will you be able to get this money back out of the house if you sell it. It’s comforting to know that you are building solid equity in your home while renovating. It also makes those $300 trips to Home Depot a lot easier. Important Note. In order to answer these questions properly, get cost estimates from your local home store and professionals if necessary. Find out how long the average job takes as well. Another important thing to do would be to see what homes in your neighborhood sell for. Your house price plus renovation costs shouldn’t exceed the most expensive house in your neighborhood in most cases. Additional Considerations When Selecting A House - When adding on to a structure, research necessary building permits to ensure the municipality will allow it. - Research historical renovation tax benefits for applicable areas. - Typically you must be in a primary residence for 2 years to avoid paying taxes on gains when you sell. Important for flipping. - Research any possible homeowner’s associations dues and building restrictions. - Consider money you'll need for tools when estimating your costs. |
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