Homebuyers who want to buy an existing home and renovate it must get a clear picture of what this means exactly. When taking on the task, the buyer must determine how much it will cost to renovate the home and buy it. Reviewing how to buy a home and renovate it helps the buyer avoid sudden surprises and stay on the right track.
Get Approval from a Lender
Getting approval from a lender helps the borrower determine how much they can borrow to buy a home. When buying a home and renovating it, the budget must include the cost of buying the property with extra money to cover the cost of renovations. When reviewing the approval, the buyer knows how much funding is available to them and won’t overspend.
Search for an Existing Property
Searching for an existing property requires the help of a real estate agent who knows the area of interest well. The agent can enter information about the buyer’s preferences and find a home that matches. The agent schedules viewings for the buyer to allow them to review each property thoroughly. Walking through the property allows the buyer to determine what changes they will want when renovating the property.
Get Quotes from a Contractor
When reviewing the property, it is recommended that the buyer hire a contractor to review the proposed renovations and quote prices for each property of interest. The estimates help the buyer determine which home is most affordable for them and won’t present them with a total cost that exceeds their buying budget. It is also recommended that the buyer allow the contractor to review the property plans for each house whenever possible. This helps them identify where utilities are that might present a higher cost when renovating.
Evaluate the Buying Budget
The buying budget includes the total amount the homebuyer can borrow from a lender and any capital they have saved for the home purchase and renovations. Reviewing all estimates for renovations helps the homebuyer create a buying budget. Applying the budget when looking at homes helps the buyer avoid issues that could prove costly later. Updating bathrooms or kitchens could increase costs based on the location of plumbing and electrical lines. If the kitchen is wired for a gas stove, the homeowner will need this changed if they want an electric stove in their kitchen.
Plan for Increases in Renovation Costs
Planning for increases in renovation costs prevents the homebuyer from facing surprises later. When renovating an older home, it is likely that some installations might have to be replaced. Most issues are discovered during the property inspection. However, some issues aren’t visible during all home inspections. Planning for extra costs gives the buyer a safety net to prevent issues later.
Homebuyers start their search for the perfect home by getting approved by a lender. The total amount available to them determines how much they have to buy the home and use it for the renovation project. Homebuyers who want to review their financial options get more information at NRIA now.