Restoring An Abandoned House: 3 Steps Every Realtor Should Follow
Have you recently bought an abandoned property among the 5.5 million empty homes in America? In that case, you would want to restore it to enhance the home’s value. Yes, renovations might cost a lot, but they will eventually fetch huge profits.
For example, a woman bought a cheap-looking abandoned house for only USD 16,500. Then, she secured a USD 100,000 loan to completely renovate it. After 18 months of renovation, this house was valued at USD 202,000.
What can you learn from this story? It proves that abandoned houses only need a facelift and structural changes to make them valuable. However, realtors need to focus on various aspects before starting the renovation process.
In this blog, we’ll discuss a few steps that you should follow to restore abandoned properties.
1. Assess the Property’s Condition
Realtors need to analyze and determine the structural integrity of the abandoned property before anything else. That’s because these homes are usually in critical condition.
The previous owners might have faced financial struggles and filed for bankruptcy, leading to foreclosure. If that’s the case, you must get all the legalities sorted out before the renovation.
After that, you can determine the following public safety issues and take action accordingly:
- Fire and exposure hazards due to chemicals and combustible materials present in the house
- Structural deterioration and the risk of collapses caused by a lack of maintenance
- The presence of waste and rubbish can cause serious environmental impacts
These factors will help you determine the home’s structural integrity. That way, you can start the repair process based on your inspection after getting the necessary funds.
2. Gather Finances For The Renovation Work
Abandoned properties are nothing but neglected homes. Hence, you’ll have to spend an estimated USD 61,400 or more on renovations. These include restoring roofing, interiors, siding, patios, etc.
Are you worried about how you’re going to finance this project? Sometimes, these can lead to personal financial problems. That’s why you should take out home renovation loans from a reputed company.
With this type of loan, you can finance every aspect of the remodeling process. These include making changes in the kitchen, building’s foundation, roofing structure, etc. Consider them as a short-term financing option to get you started. Some say that it’s a secret weapon for most realtors.
Other than that, real estate investors can help finance the project if you can convince them. For instance, you should inform them about the structural damages, the kind of finances you’ll need, and your vision. Realtors can also get financial help from their family or friends for such projects.
In either case, remember to keep construction contingencies in your budget. That’s because abandoned properties can face unforeseen problems, leading to additional fees. These include mold, rot, cracks, vandalism, etc.
3. Start The Restoration Process
Realtors can hire property renovators once they have enough finances and a better understanding of the structural issues. According to SitePro Rentals, these professionals will rent or buy cutting-edge equipment and use industry-leading technology to get the job done.
You should coordinate with the renovators and follow these steps to start the renovation process:
Focus On The Foundation
Initially, the renovators will check the building’s foundation. It’s the load-bearing portion of the house that’s typically underground. That’s why you need it to be strong and in good shape.
You can use mini excavators for rent to access the underground parts of the property. Mini excavators can help you move materials and dig trenches on delicate surfaces. In a renovation project, such gear will give you better access to hard-to-reach areas.
Did you know that you can rent mini excavators that are only 2 to 9 tons? Yes, these will cause less damage to the abandoned house and are easier to operate. You can also use mini excavators for landscaping and earthmoving tasks during renovation.
Restore Historical Features
Renovators will recommend changing the overall look of the property to make it more modern. However, as a realtor, you need to ensure that the historic features of the house remain intact. These include fireplaces, tiled flooring, etc.
Many homeowners would love a property that has modern and vintage features. Therefore, you must try to restore the original beauty of the abandoned property and maintain its historic charm. It’s also a way of showing respect to the previous residents.
Moreover, you can hire an interior designer to help you add a few creative and stylistic touches to enhance the property’s value. Try to restore the existing furniture if it isn’t too worn out.
In summary, realtors can restore an abandoned property if they follow the steps mentioned in this blog. For example, you’ll need financial assistance from investors or loans. Similarly, interior designers and renovators can help you through the process.
But remember to keep the historical features intact, as they can significantly enhance the property’s value.
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