What to Look for in an Outdated Home Before Deciding to Buy/ Renovate

Today, we’re getting into a topic we deal with on the daily: what to look for in an outdated home before deciding to purchase and fix it up.

Buying a fixer-upper can be both a fantastic investment and an exciting project, but it’s important to know what you’re getting into. Here’s our checklist of key factors we think are important to consider before taking the plunge:

1. Structural Integrity

First and foremost, make sure the house has good bones. Check for any signs of structural damage, such as cracks in the foundation, uneven floors, or sagging roofs. A home with solid structural integrity can handle the updates and changes you plan to make, while one with significant issues might require more extensive (and expensive) repairs.

2. Roof Condition

A sturdy roof is crucial. Look for signs of wear and tear, such as missing shingles, leaks, or water damage in the attic. A new roof can be a significant expense, so knowing its condition beforehand will help you budget appropriately.

3. Plumbing and Electrical Systems

Outdated or faulty plumbing and electrical systems can lead to major headaches down the road. Have a professional inspect these systems to ensure they are up to code and in good working order. Rewiring a house or redoing plumbing can add significant costs to your renovation.

4. Layout and Flow

Consider the home’s current layout and how it fits with your vision. Is it possible to open up the space or rearrange rooms to create a more modern and functional layout? Is there enough space to add an extra room, expand the kitchen, or create an outdoor living area? Sometimes, a simple reconfiguration can make a world of difference. Having room to grow can add significant value to the home and make it more livable in the long run. We turn down a decent amount of fixer uppers based on the inability to adjust and improve the layout.

5. Windows

To save money on heating and cooling, prevent lead exposure, and be fully functioning, a lot of times windows on outdated homes need to be replaced. This, however, (if you couldn't have guessed by now) is not cheap and should be greatly considered in the overall renovation budget for the project. When walking through a home, we always take note of window condition and how many windows there are throughout the home in order to get a good replacement cost estimate. Also, older homes with basements tend to have rooms with small windows that could be transformed into bedrooms with proper egress window installation. This can be a great investment if you are needing an extra room in the home with additional equity added on for re-sale.

6. Historical Charm and Unique Features

One of the best parts of renovating an older home is preserving and enhancing its unique features. Look for charming elements like original woodwork, vintage tiles, or architectural details that you can highlight in your renovation. These features can add character and charm to your finished project.

7. Neighborhood and Location

The location of the home is just as important as the house itself. Research the neighborhood to ensure it’s a place where you would want to live or invest. Look for areas with good schools, amenities, and a strong sense of community. A great location can significantly boost the value of your renovated home.

8. Budget and Potential ROI

Finally, this is one of the most important pieces to consider: be realistic about your budget and the potential return on investment (ROI). Make a detailed renovation plan and estimate costs for each aspect of the project. Compare this to the home’s current market value and the potential value after renovations to ensure it’s a sound financial decision.

Our Story: Rice Marsh Reno

Let’s take a quick trip down memory lane with Rice Marsh Reno, one of our favorite projects. When we first saw it, the place had a solid structure but was severely outdated. The deck was falling off, windows needed to be replaced, and the plumbing needed work. However, the layout and beautiful view of the lake had us hooked. The neighborhood was fantastic, too, with great schools and parks nearby.

We assessed the potential, created a realistic budget, and went for it. The result? A stunning transformation that preserved the home’s charm while giving it a modern, functional layout. A once outdated home is now a beautiful space with a great ROI, and we have another successful project to add to our portfolio.

Buying and renovating an outdated home can be such a rewarding journey, filled with opportunities to create something truly special if you take the time to do your due diligence. We hope this guide helps you in being able to get your foot in the door into real estate investing while making informed decisions about what your next project could be.

Until next time, happy home hunting and renovating!

Sammy & Jarod

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