Not everyone is interested in purchasing a turn-key property, that is, a brand new home that requires no work. For many, home buying is about finding a house that speaks to you and provides the potential for profit through home improvement.
In order to achieve this, you often need to purchase an older home that needs some major work, or some simple updating. Older homes have a certain type of charm to them, from architectural details on the outside to the amenities of the interior – they simply have more character and personality that what you see in modern homes. If you can capitalize on the character of the home without losing it in the renovation process, there is a good chance you will make an impressive profit on resale. Finding the right home is often the toughest part of the whole process. If you are seeking the perfect project house, the home buying process can be a lengthy process.
When you do find an older home that meets all your needs, there are a few things you should consider before purchasing: your renovation budget, the market and your home inspector’s opinion. The last thing you want is to buy a money pit and your home inspector will be able to tell you if a problem is worth fixing (based on the price of the home), or if it is bound to become a major financial headache. Secondly, you have to set a renovation budget to ensure things don’t get out of hand – make sure your home buying adventure only consists of homes that you can afford to renovate. Finally, look at he housing market. If you renovate is it likely the home will sell for what it’s worth, or will you get more or less than its value? Is it likely to sell quickly, or sit on the market for while? If your goal is to make a profit, you’ll certainly want to be buying in a hot market with a high housing demand.