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5 Tips To Rehabbing A Home

Rehabbing a home involves restoring a home to a better condition than its present state. In the rehabilitation of a home, the floor plan is not altered, but other aspects of the home are. Rehabbing a home has many benefits. If you are someone who enjoys construction work, rehabbing a home can be a fun way to use your skills in a way that also provides some financial benefits. If a rehab is done correctly, the rehabber is going to make a profit.  If you are interested in taking on such a project, here are 5 tips to rehabbing a home that are going to benefit you:

  1. Be sure to estimate the rehab costs correctly. There are two important reasons to know the rehab costs: if you have already rehabbed a home and are looking at selling it or if you just purchased a home and are looking to rehab it. Either way, you are going to want to have an accurate estimation of the rehab costs. When purchasing a home, you are going to need to know if you have the funds available to make the needed repairs and if those repairs are worth the expense. Not having enough funds to make needed repairs is problematic, as it will decrease the chances of your home being able to sell, resulting in loss of money for you. To sell the home, you will want to know how much money you have invested into the home. A homeowner who rehabs a home then sells it for a greater price than the total of the cost of the home plus renovations is going to make money.
  2. Determine whether to hire a professional or do it yourself. There are advantages and disadvantages of hiring the project out or doing it yourself.
    • Doing it yourself:
      • You will most likely save money.
      • You will need to make sure that any project you do is done properly, according to regulations. That is an area that the professional is going to be on top of, but a homeowner is going to need to do some research on.
      • You will have to invest a significant amount of time in the rehabbing of your home. It is important to make sure you have a significant amount of time to spend.
    • Hiring a professional:
      • It will most likely be more expensive.
      • It will most likely take less time.
      • You will have to make sure that the professional completes the job the way you want it to be completed. Rather than having control over how the project turns out, like you would if you did it yourself, you will have to oversee that the professional is rehabbing the home the way you want it to be rehabbed.
  3. Make sure to have your permits ready. Permits are essential to the success of a rehabb project. The permits need to be obtained before any work begins. If you do not have a permit for a specific project, then there are negative consequences. You will have to stop working on that project until you receive the permit. This will delay the project and you will have to pay fines for not having a permit in the first place. The chances of you being caught doing work without a work permit are moderately high. During the rehab phase, there are a variety of people who have the potential to become suspicious of you not having a permit. For example, loud noises from the construction work could cause the neighbors to become frustrated and call the police. Once the police show up, they are going to ask you about your permit for the work you are doing. Then, once you look to sell the home, an inspector or real estate agent may ask you for the permits for the work that was recently completed. Without the permits, you will not be able to sell the home.
  4. Know the area. Types of renovations that are going to provide the most financial benefit are somewhat dependent upon the area that the home is located in. Typically, the kitchen and bathroom are the two most financially beneficial renovations in a home. But to know what type of bathroom and kitchen to design, know what types of bathrooms and kitchens are the most valued in the area. There are certain projects that are going to be essential. Do those first. Then consider adding additional features that homeowners in the area like. This could be anything from a swimming pool to a large grass lawn or a balcony.
  5. Wait to advertise the house until the rehab is underway. There are a variety of views when it comes to when is the best time to start advertising a home that is being rehabbed. Some believe that the best time to begin advertising is when the entire project is almost complete. This viewpoint is based off the idea that presenting a home in its “work in progress” state is going to decrease the chances of the home selling. The prospective homeowners will potentially have trouble picturing the home in its finished state because of being so distracted by the dust, hanging wires, and open windows. Others believe that the best time to start advertising a home is once the outside of the home is presentable. This enables the home to be on the market longer, having more time to peak interest in prospective homebuyers before the home is ready for sale.

 

Rehabbing a home takes work, creativity, forethought, and salesmanship. If a rehab is done correctly, the home is going to have modern, quality, value-adding improvements. Once the rehab process is done, the last step is to sell or move in!

Contact Paul Chunyk

Reach out to me, I would love to give you more details and get you headed in the right direction to accomplish your goals.

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