WHAT YOU NEED TO KNOW ABOUT RENOVATIONS
Do your own due diligence
Listen, people lie. That is just the cold hard facts so rather than bank on what you’re told, go find the facts for yourself. What is involved in digging for facts?
Is it Historic?
In our area, Historic houses can be a big deal. Depending on the town, if you buy one you have to follow certain rules to keep it new but historic. You can’t design or decorate outside the proverbial box so make sure you check with the city.
What is the zoning?
Why is zoning important with a renovation? Great question! You could be trying to expand a footprint on a lot that won’t allow for it. We looked at a house in a great neighborhood that was on a ½ lot. The only way to really make an impact on its value was to add on but we couldn’t go up but the city wouldn’t allow us to expand the footprint. Dead deal for us. You could be buying a house you later find out is a teardown only to find out it’s zoned commercial and the city won’t let you put back a residential home. It’s really smart to run all of your wishes for this property by the powers that be to make sure you didn’t buy a property you can’t make money on.
Has it flooded?
Some brokers would argue that this is not a material fact but we believe it is especially since Hurricane Florence was in our not too distant past. Because some may not feel required to disclose this, ask anyway but look for signs while you’re waiting for an answer. Are there water marks on the walls inside or out? Are joists under the house rotted? Is the crawlspace a mess with debris underneath leading you to believe water carried it under there? Does it smell like mold? Do the floors feel like a skateboard park? Check the elevation and you can often decipher the likelihood. As a side note, check to see if there are wetlands on the property. Many times this isn’t an issue but one I personally don’t love are the bugs that come along with the dampness.
Are there foundation issues?
If you have any serious issues and are not a general contractor, the math paying one to try to fix these may cause you to walk away. These are houses we specialize in…the ones that scare other people away. Make sure to get an engineer to take a look, if in doubt.
Does it have a crawlspace? If so, can you crawl underneath to see what it looks like structurally? Is there evidence of water damage like rotted wood? What does the concrete look like? Is any of it broken or brittle? Has it settled? If so, is it enough to be jacked? Is there termite damage? If it’s been encapsulated and it all looks good that is great but then you won’t be able to see what we just talked about. It may require pulling up some flooring and subflooring to take a peak.
If it’s on a slab, that is often better for the ‘under the house’ issues but worse if you need to add plumbing. There are definitely pros and cons. A slab can still have erosion underneath causing cracking and shifting. Look at how doors are closing, how level the top trim pieces of doors look. Does one area of the house seem fine while the other has issues? Take a look at the concrete walls in the garage. Do you see any big cracks? Are there gutters on the house? If not, do you see erosion around where the water is running off?
Now, let's look up
What does the attic look like? Are load bearing walls supported? Are the walls you want to tear out load bearing? Not a big deal if they are, but you need to know that now. Do you see deflection or sagging headers? What does the roof look like? How old is it? Can you see any daylight from the attic? Are there any signs of water damage?
What if you want to add a floor?
This is really not as easy as it sounds. First, footings need to be verified. If the footings won’t allow for more load, can you frame just outside the existing walls so that can carry the load of the new roof and walls? Sometimes the setbacks won’t allow it. In our area, a lot of older houses are right on or super close to the setback line so going over at all is not an option. Does it financially make sense? Whether you’re keeping this home to live in or sell it, will it appraise after all of the work you’ve put into it?
What is the age of the electric, plumbing, and HVAC?
Old houses are notorious for having expensive electrical and plumbing headaches. We’ve torn out sheetrock, shocked that the house hadn’t burned down yet. The electrical panels are scarily outdated and often overloaded. Many times, before an electrician will touch one they wisely turn the main breaker off to the house. Old steel and copper pipes are replaced with PVC which is also not cheap. All of this leaves a lot of exposure to water leaks. Don’t skimp on this and plan for the worst. It’s just part of the game. HVAC is another one that is a big ticket item. Sometimes you have issues with ductwork that has to be taken out and replaced under the house. Some trades people won’t crawl under houses so don’t assume your normal person is game for this. Check first. The units may be rusted but the air return is okay, only to find out they don’t make ones that intermingle anymore. To replace one you have to replace them both. More money…
What is the septic and water situation?
If you are on city water and sewer, that is a great thing. If you have a septic system in play, make sure to have it inspected before you buy. The least expensive ones to replace are around $12,000 in our area. If you have a well, also make sure to have it inspected and the water tested.
The final thing we will say about bigger renovations if you haven’t already picked up on this, is to put a healthy contingency fee in your numbers. There are always surprises, like asbestos and termite infestations, so make sure to plan for them! Renovations are still fun and worth doing. Just know what you’re dealing with going into it!