Are you thinking about buying a fixer-upper, but not sure if a home is truly worth the remodeling investment? It's a common challenge for homebuyers who want to turn a dated or worn property into their dream home. The problem is that not every house is a good candidate for a remodel, and recognizing the difference can save you time, money, and a lot of headaches.
Here at JSB Home Solutions, we've teamed up with Kendra Carter of The Carter Group with Keller Williams Realty to bring you expert advice on identifying homes with remodeling potential. With our 46 years of remodeling experience and Kendra’s real estate expertise, we can help you navigate the process of buying a fixer upper from start to finish.
In this article, we'll walk you through the key factors to consider so you can confidently spot a home that's ripe for transformation. By the end, you'll know how to identify a home with remodeling potential and understand what makes it a smart investment.
Table of Contents:
What Should You Look for in a Fixer-Upper?
1. Location in a Growing Area with Close Amenities
When it comes to real estate, you’ve probably heard this mantra: location is everything. A home’s location can make or break its remodeling potential, especially when you’re planning to sell in the future. Even the most beautifully remodeled home won’t reach its full market value if it’s in a declining or undesirable area.
What to look for: Pay attention to neighborhood trends—are homes selling quickly? An experienced realtor like Kendra is a great resource for this information. Is the area experiencing growth? Other factors like school districts, proximity to amenities (parks, shopping, restaurants), and future development plans can give you a good sense of whether the location will support a higher resale price after the remodel.
2. Structural Integrity and Layout
A home with good bones is like a blank canvas—it’s much easier to work with and customize. When a house "has good bones," it means the structure and essential components, like the foundation, walls, and roof, are solid and in good condition. This ensures that while cosmetic updates may be needed, the core of the home is stable, making it easier and more cost-effective to remodel. However, homes with major structural issues can turn into money pits, costing more to fix than the remodel itself. This is why structural integrity is so crucial.
"I have seen slanted granite countertops, crooked ceilings and cracked floor tile from investors not paying attention to structural integrity. In most cases, I still recommend a home inspection for investors/home flippers." - Kendra
What to look for: Before getting carried away with cosmetic changes, ensure the foundation, roof, and walls are solid. It’s also smart to check for any signs of water damage, cracks, or sagging. If the home has a logical, flowing layout that works for modern living, you’ll have a lot more flexibility with remodeling without major disruptions.
3. Floor Plan Flexibility
Speaking of layout, a home with a flexible floor plan is a huge advantage. If you can easily reconfigure rooms or open up spaces, you’ll have more freedom to create the dream home you envision. A flexible floor plan means you can adapt the home to suit your needs without running into significant structural challenges.
What to look for: Look for homes with fewer load-bearing walls that might obstruct your remodeling plans. Unfinished spaces, like basements and attics, offer great opportunities to add livable square footage with minimal effort.
"Having the input of a structural engineer is also beneficial. Age of home is important, too. The older the home is, the more risk for lead and asbestos hazards as well. Those medium level renovations turn very costly, fast." - Kendra
4. Outdated Interiors and Cosmetic Flaws
Here’s some good news: outdated interiors and cosmetic flaws are often the easiest (and least expensive) aspects of a home to fix. If the house has 70s shag carpet or a kitchen with avocado-colored appliances, don’t run the other way! These are the types of issues you want to find because they offer a great chance to increase the home’s value with relatively simple updates.
What to look for: Focus on finding homes that need cosmetic upgrades like new flooring, updated fixtures, or a fresh coat of paint. These kinds of changes are inexpensive compared to major renovations and can completely transform the look and feel of a space.
"In today's market, it is key to be the first to a property as inventory is so low. Ask your real estate expert to add you to daily notifications so you don't miss these opportunities." - Kendra
5. Underutilized Spaces
Adding functional space to a home can have a big impact on its overall value. Homes with basements, attics, or large garages that aren’t fully utilized offer huge potential for remodeling. Whether you’re turning an unfinished basement into a rec room or converting a garage into a guest suite, underutilized spaces can provide a significant return on investment.
What to look for: As you tour homes, keep an eye out for these spaces. You might find a small home with a large unfinished basement that could double its livable square footage once remodeled.
6. Budget and Cost of Remodeling
No matter how much potential a home has, you’ll need to consider whether the cost of remodeling fits within your budget. Some homes may look like a steal upfront, but once you factor in the cost of renovations, the total investment might be more than you’re willing to spend. That's why it's crucial to calculate your remodeling budget carefully.
What to consider: Work with a contractor or remodeling professional to get estimates for the renovations you're considering. Compare the cost of renovations with the potential increase in the home's market value. If you’re planning to sell, think about the return on investment (ROI) and whether the remodeling will pay off in the long run.
7. Potential for Energy Efficient Upgrades
Energy-efficient homes are not only better for the environment, but they’re also a huge selling point for buyers. Retrofitting a home with energy-efficient features can make it more attractive in today’s market, so this is something to consider when assessing remodeling potential.
What to look for: Look for homes where you can make energy-efficient improvements, such as upgrading windows, adding insulation, or installing solar panels. These upgrades not only increase the home's appeal but can also save you money on utilities while you live there.
Is Buying a Fixer Upper Worth the Investment for Me?
Buying a fixer-upper can be a rewarding investment, but only if you choose the right home. The key is knowing what to look for—whether it’s the location, structural integrity, or hidden potential in underutilized spaces. As you start your search, use these tips to evaluate each property’s remodeling potential and avoid costly mistakes.
Purchasing a home to remodel may be worth the investment if:
- The home is in a desirable location with good schools and close amenities.
- The home has a solid structure (good bones) and a good layout.
- The projects needed are limited to cosmetics and increased energy efficiency.
- There are unfinished spaces that you could turn into livable square footage.
- The purchase price and remodel costs fit within your overall budget.
Buying a fixer upper may not have a high return on investment if:
- The home is not in a desirable, growing location.
- The home needs too much structural work or has had water damage to the foundation.
- There are lots of load bearing walls that limit what you can do with the layout.
- There is no basement, attic, or garage to convert into livable areas.
- The cost of buying AND renovating the home is more than your budget.
Choosing the right realtor can also make all the difference. Partnering with a realtor who understands remodeling practices, like Kendra Carter of The Carter Group with Keller Williams Realty, ensures you're not just getting a great deal, but you're also finding a home that aligns with your remodeling goals. With this combined expertise, you’ll be better equipped to identify properties that are truly worth the investment.
If you’ve found a home that seems like it could be your ideal fixer-upper but you’re unsure about the remodeling possibilities, reach out to JSB Home Solutions for a consultation. We’ll help you determine if the home is worth the investment and guide you through the remodeling process every step of the way.
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