You guys have been with me through the thick and thin of 3 top-to-bottom home renovations. Through this series I hope to share with you some of the tips and tricks that have helped me save everything from money to my sanity (for the most part).
Even if a home has all the bells and whistles, it still might be a terrible investment for you, or you might not enjoy living in it. Here are some things you should look for when making an offer on a house:
1. A great layout or a layout that can be changed.
Very few things affect the way you live in your home like the layout. We have passed on more beautiful homes than we can count because our future kids’ bedrooms would be on the other side of the house, or the master bedroom was in a tiny converted attic, or the wall couldn’t be taken down between the kitchen and family room because it backed to a fireplace. Try to see past all the glitz and glamour of a home to feel how the layout would actually work for you (or a future buyer).
2. All the systems are in good basic condition.
Buying a house is expensive, period. If you can, find a house that only needs cosmetic updating – since you’re unlikely to get your money out of replacing those leaking pipes.
3. The house has features that are important in that neighborhood.
Is the house in a family neighborhood where big backyards are a must? Does every house on the block have an attached garage? Even if these features aren’t important to you, the fact that they’re found in every house indicates that they’re important to most people in the neighborhood – as well as the people that will eventually be buying your house.
4. It’s in a good location.
If you’ve heard it once, you’ve heard it a thousand times – 90% of real estate is location, location, location. But what does that actually mean? The bottom line is that you should buy the worst house on the best block in the best neighborhood that you can afford (so long as that house doesn’t sit on the intersection of train tracks and the highway).
5. No prior renovations have been done (if you’re planning to do your own renovation).
If you’re a flipper, you don’t want to pay for someone else’s renovations – those renovations will cut into your profit (because you’re likely paying a higher price for the house), and you might have to re-do those updates because they’re outdated, done incorrectly, or are simply unattractive. Scour neighborhoods for homes advertised as “needing updating,” “one-owner homes,” or “with original features.” Those are the diamonds in the rough.
What considerations were important to you when buying your home?
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