Due to market demand, houses in popular neighborhoods are among the hottest properties for investors. But just because a home looks good doesn’t mean the profit potential isn’t there. The renovation must meet certain criteria to deliver profitable payback.
When looking for renovated homes for sale, it helps to understand the traits they should have. You need to know how certain features translate into profitability for you.
So read on to learn these factors to consider before buying a renovated home as an investment property.
Location of the Property
Investing in a property located in a desirable neighborhood can deliver long-term benefits. So you should investigate the house’s local amenities to ensure the property is well situated for future buyers. This includes transportation, schools, and recreational facilities.
Furthermore, it’s crucial to make sure that the home is in a low-crime area. The place has to have good infrastructure and access to stores and other services.
Quality Materials and Finishes
When browsing for houses on sites like ClearSale, look for hardwood floors and granite countertops. These features will add value to the home and return a significant profit to the investor.
High-quality craftsmanship shows that the homeowner invested a sizeable home renovation budget. So you know that there was time and effort put into making sure that the home will be perfect.
Energy-Efficient Upgrades
Check to see if the home has been outfitted with new windows and lighting fixtures that are energy-efficient. If it has foam insulation, this helps keep the interior of the home at a constant temperature without needing to crank up the heat or AC.
You should also assess if the home has a programmable thermostat before closing a home sale. This particular appliance saves energy by automatically shifting settings and decreasing energy usage.
If the home has upgraded heating and cooling systems, it can help to reduce electricity and gas bills. Solar panel installation can also be beneficial if you’re looking for a home with eco-friendly upgrades.
Extra Rooms or Space
Extra rooms can be used for additional storage. Or you can use it for future remodel ideas such as a home office, guestroom, craft room, or even an extra bathroom. It can even provide added space for entertaining.
If a house does not have extra rooms, consider the floor plan and look for extra nooks and crannies. Assess whether you can do your DIY home renovations like converting a space into a bedroom or a larger living space.
Foundation Upgrades
A good foundation is essential to the structural integrity of a home. Foundation upgrades include reinforced walls and the lack of crumbling concrete blocks or bricks.
So don’t hesitate to ask the homeowner or previous owner if there have been any recent changes or repairs to the foundation. Then, make sure to ask for any documents showing inspections, repairs, and/or any necessary permits obtained.
Choose Renovated Homes for Sale Carefully
The key to making sure renovated homes for sale are worth the purchase price is to go in knowing what to look for. Be sure to look at the quality of the materials used, the quality of the appliances, and any new features that have been added.
With a little bit of research and preparation, you can find your dream home for sale. Take that first step today and start looking for the perfect renovated home.
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