Diamond in the Rough
So what is a Diamond in the Rough? Something that has hidden exceptional characteristics and/or future potential, but currently lacks the final touches that would make them (or it) truly stand out from the crowd.
A House’s first impressions is everything (or is it?) and it’s difficult when you see a home for the first time not to make an immediate judgment. Many people are turned off by what they first see, smell, and hear. But, there are many homes out there worth taking a closer look at (do you have a vision that could turn a piece of coal into a diamond). Some call it “good bones”. Often a home has been neglected for reasons such as; someone has passed on or taken ill, the home has been rented out or sometimes it’s just because people really don’t have the time, resources or they have more pressing priorities.
It’s difficult to walk into a house that looks like a disaster and see beyond the clutter, dirt and bad or outdated decorating choices. But, there are many homes that with some clean up and minor renovations can be quite functional and appealing. If you can see beyond all of the undesirable surface problems you may get a break on something that most people would turn a blind eye to and walk the other way.
If you’re considering a home like this, first you need to find out if the home is structurally sound. Are there any major problems like roof, electrical, plumbing, windows, leaky basements, kitchen or bathroom repairs or renovations that need to be done?
Often adding a bathroom or a garage or turning a smaller bedroom into an office can give you the home you ultimately want. If a home is on a particular lot or piece of property you love but the house is not quite up to snuff, then it may be worth doing the repairs or renovations to give you the complete package.
Bringing someone with you who has sound knowledge of these types of things and what it will take from a labor, materials and cost perspective to bring the home up to your standards is a good idea. A person who is experienced with home renovations or a home inspector or appraiser is a good choice.
Once you’ve determined what needs to be repaired or replaced, you will need to decide two additional items; do you have the monetary resources to complete the projects in the time frame you are looking for and if you can or want to take on any of the tasks on yourself or will you need to hire someone else to do it.
Can you and/or your family live in the home while the renovations are being done or will you need to live elsewhere?
If you can’t afford to repair or replace everything now, what can you live with until you are able to make it happen?
Maybe you are considering this home for investment purposes. You must determine if the money you will put into this home you will get a return on once the improvements have been made. Some things to consider are:
- Are the changes to the home cosmetic in nature?
- Does it just need a good clean up and some fresh paint?
- Does flooring need to be replaced and what is the cost to do that?
- Are the windows and roof in good condition and when will they need replacing?
- Is the heating system in good working order?
- If it is a country property are the well and septic system in good working order and when were they put in?
- Electrical and plumbing should be looked at to ensure they are up to current standards.
- Is the home insulated properly?
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Is the exterior of the home in good condition?
If you are considering a home like this, next you must ensure that it is in a good community or neighborhood. You can put a lot of sweat and money into a home only to find out later that it won’t sell or you’re not happy there because it’s in an undesirable neighborhood or community. It’s never a good deal if you hate living there or can’t sell it.
Many times if you broaden your search criteria and you become open to looking at homes that you never would have thought to look at in the past, you may find your diamond in the rough.
