Why Are Homes That Need Cosmetic Updates Often Better Investments?
- Less buyer competition
- Lowering your budget opens a lot of options to explore, and you’ll have a better chance at closing the deal since you started with a higher budget and have room to stretch.
- Better purchase price
- This one may seem obvious, but it’s true! Your mortgage payments may be lower depending on how you plan to pay for the renovations.
- Immediate equity potential
For example:
- A move-in-ready home costs $950,000.
- A similar home nearby with an outdated kitchen, old bathrooms, and worn finishes costs $800,000.
- You invest $100,000 in thoughtful renovations.
- Your total investment is $900,000, but the home’s new market value may now be comparable to the $950,000 (or even higher if the renovation is exceptional).
In that scenario, you’ve potentially gained $50,000 or more in equity while ending up with a home tailored to your preferences.
- Personalization
- When you get to renovate a home of your own, ideally a whole home remodel, it’s an endless sea of options to play with! Want to change the flooring? Go for it! Want to completely re-do the kitchen? We’re here to help. The options are truly endless, and we make it a very fun and collaborative process.
- Avoid paying for someone else’s design choices
- The higher the price of the home, the more likely it is that your paying for a lot of custom work done by the previous owner. This may be ideal for some buyers, but you end up paying for someone elses dream home when you could be investing in your own dream home.
What Types of Renovations Add the Most Value Before You Move In?
- Kitchen remodel
- Bathroom remodel
- Flooring updates
- Lighting updates
- Painting (interior or exterior)
- Layout changes or additions
- Storage improvements
- Exterior improvements
Should You Renovate Before Moving Into Your New Home?
Here are the main benefits for competing renovations before moving into your new home:
- No living through construction
- Construction schedules typically start at 7am and work until around 3:30pm and while our crews are highly organized and maintain a cleanly work environment, you will still be navigating your morning routine around a construction zone.
- Faster timeline
- While other factors can impact a timeline, an empty home allows for our team to use their time effectively and often jobs are achieved more smoothly.
- Lower stress
- Easier management
- Our team provides full service management for your project whether you are living in or out of the house, but our clients who have chosen to live outside of their home find they enjoy being able to visit their project on their own schedule and leave it behind when they need to. We’ve always got it covered.
How Can a Design-Build Firm Simplify the Entire Process?
Our team can help in every step of the process to ensure that you’re making the right choice for your budget and lifestyle even before you purchase the home.
- Evaluate renovation potential before purchase
- Establish realistic budgets
- Design and deliver accurate architectural designs
- Work through all of your interior selections
- Handle all permitting needs for the project
- Full service construction
- You’ll have a dedicated lead carpenter throughout the building process
- We serve as one point of contact for every part of the project to make management easy and stress-free
What Should You Look for When Touring Homes That Need Work?
Things you should look out for at the homes you tour:
- Structural concerns
- These aren’t impossible to mitigate, but they can end up being quite costly.
- Roof
- A new roof is another large expense that is certainly less exciting than a new kitchen. It is necessary, though, so be sure to account for this possible fix.
- Foundation
- Similar to structural concerns, a foundation is a costly fix that we can certainly help with, but it may mean sacrificing a portion of your project scope.
- Mechanical systems
- Historic details worth preserving
- If you’re lucky enough to find a meticulously cared for and maintained historic home, preserving those details within your project should be a priority. Be sure to note the level of detail the home already has and what needs restoration.
- Layout possibilities
- As you tour the home, imagine it completely empty, and try to imagine the ideal flow of the home. Would an opened up wall create a grander space? Would it make sense to move or enlarge the kitchen? And what may stand in the way of this happening? Be sure to note load bearing walls or any architectural inconsistencies throughout the home.
- Natural light
- This detail is highly overlooked by home buyers. Natural light is crucial for how your home feels throughout the day. Not just the temperature, but truly just the ambience and it can affect every detail of your project down to the paint color. Pay attention to where the sun would rise and set each day. This alone may dictate where you choose to relocate a bedroom or which wall you open up.
- Neighborhood value
- You can’t go wrong with so many neighborhoods in Rhode Island. Areas like Watch Hill are especially popular and always promise a healthy return on your investment. Check out this interesting blog we are featured in that details the real costs of moving into the Watch Hill
Thinking About Buying a Home That Needs Renovation?
If you’re considering purchasing a home that needs updating, involving Red House early in the process can help you make a more informed decision. We can evaluate a home’s renovation potential, discuss realistic budgets, identify opportunities to maximize your investment, and begin planning your project before you even move in. By integrating design, budgeting, and construction from the start, we help create a smoother transition from closing day to enjoying a home that’s thoughtfully tailored to your lifestyle.
