5 Steps On How To Buy An Outdated Home In A Location You Love And Renovate Into Your Dream Home

5 Steps On How To Buy An Outdated Home In A Location You Love And Renovate Into Your Dream Home

If you know where you want to live, but just can't find a home that works, here are five steps that can make it happen:

1) Troll the location you love and find a price point that you can afford even if the home isn't ideal

It would be great if the perfect home was move in ready and available in today's competitive real estate market, but that is usually not the case. So rather that keep looking for the perfect home (because you can have a great agent simply leave searches running for that for you anyway), then start scouring the location you want to reside in the end and make yourself aware of any and all options that might be coming to market, even if they need love. The best long-term value (especially if this is your last move or dream home) is something that needs a renovation. Renovations are not for everyone so if you aren't up for walking through a construction project, you can stop reading now!

2) Understand if the property can be added onto without limitations.

If a property for sale has a survey, call the Town or City's Planning Department and see if you can add square footage rather easily. If the answer is yes, you are on the right path and it is time to assemble a team. You would be amazed how many people overlook this opportunity because they are only looking for a set number of bedrooms.

3) Know exactly what you can afford

Having a clear picture of what your new housing expense will look like is important. Don't forget to get the full picture which should include property taxes, homeowners insurance, flood Insurance or even increased maintenance costs. There are a million mortgage calculators on the Internet, please use them, but don't forget about all the items. Many people overlook to total cost of ownership. If you do decide to renovate get all those numbers well ahead of time.

4) Hire a builder first

Many builders will answer many of your questions as a courtesy in the hopes that you will hire them should you indeed proceed with a construction project. I recommend you hire a builder upfront and rather than working around the whole competitive bid process, tell the builder you have a certain amount of money and see if they think the project is even feasible. The competitive bid process increases the chances that builders aren't bidding the whole project apples to apples anyway and human beings will typically change their minds during a construction project so plan a change order contingency of 10%. Make every effort to run a tight budget regardless, but better to have a reputable general contractor working for you than to have surprises later.

5) Work with local professionals that have worked in your desired area before

Whether it is the architect, landscape architect or civil engineer, work with people that have experience in the Town or City where you want your home renovated. Plenty of nice people make mistakes so get contacts that are highly recommended and go before the approval boards often and are successful in those efforts. Check references and understand the while it may cost you more to work with reputable locals; it could save you money in the end.

In summary, renovating a home can intimidate many, but if you are up for it, it is the greatest way to make something your own and build long-term value on a property. The old adage of "Measure Twice, Cut Once" will go a long way. It has worked for me personally, many times.

About the Author:

David Seay, BIC, CCIM, CIPS, REDM is The Broker in Charge and Co-Founder of The Brokerage, a real estate and business brokerage company based in Charleston, South Carolina. They specialize in residential and commercial real estate as well as business broker and have not only bought and sold many homes, but also built many homes from the ground up. You can reach David Seay at 843-364-6720 or at [email protected]