The great buyer's market now throughout the country - with a plethora of inventory of foreclosures and short sales - looks enticing to buyers who think they can patch the home up a bit and build in some sweat equity. But you may get more problems than you think. Here are some considerations if you want to buy and then remodel.
1. Professionals can help
Call an architect when an addition is being considered or major interior work is to be tackled, such as moving walls, stairs, or windows. Use a contractor to advise on materials and labor costs for major projects. A designer may be the best person to ask if the work is more cosmetic, such as changing wall colors, tiles, or countertops. A specialist such as a structural engineer might be best for advice relating to specific problems like a cracked foundation.
2. Underestimate the costs
Most pros have done enough projects to estimate the final price tag, based on square footage, materials, appliances, level of finish, custom cabinets or stock, and labor. Be sure to set aside funds for unforeseen problems such as decaying joists and pest damage.
3. Think long range
The cost of changes becomes more sensible if they’re amortized over a longer time frame, and you stay in the home at least five years. The more expensive the repairs, the longer it will take to recoup your investment.
4. Know the values in the area
Here’s where my expertise as a salesperson knowledgeable about comparables in the Daytona Beach area is invaluable. You need to know that the improvements you want to make will be warranted and supported by the values of neighboring homes.
5. Do you want the inconvenience
Camping out and using a makeshift kitchen in a basement is fun only for so long. You should decide how willing you are to be inconvenienced if you plan to live in the house during construction.
6. What are your financial goals
Before you proceed to purchase and then remodel, be honest about whether the changes are where you really want to invest your money, or if you’d rather buy the house, avoid changes, and spend discretionary dollars on vacations, save for retirement, or your children's future.
Buying and remodeling, in that order, can be a very tough decision because there are so many homes available now where some work can make the investment appreciate. I know the area and community values. Contact me for Daytona Beach real estate expertise.
Sherry Armstrong, Realtor
386-679-3191
yourkeytothebeach@gmail.com
www.sherryarmstrong.com
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