Buying with the Intention of Renovating

Many of the clients we work with come to us because they can't find exactly what they're looking for on the market.

They love a particular neighborhood, but the right house isn't available. Or they find the right location, but the house needs more work than they're initially comfortable taking on.

For these buyers, renovating can open up possibilities that simply aren't available through a traditional home search.

But there is an important distinction between finding a house you can renovate and finding a house that actually makes sense to renovate.

That is where our experience becomes particularly valuable.

Start With the Numbers

Before falling in love with a renovation project, you need to understand the complete financial picture.

That means looking beyond the purchase price and considering:

• The cost of the renovation you envision

• Necessary repairs and infrastructure

• Design and professional fees

• The cost of carrying the property during construction

• Contingency for the unexpected

• And, importantly, the likely value of the finished home

A house may look like a great opportunity at first glance, but if the purchase price is too high or the scope of work is too extensive, the numbers may no longer make sense.

The goal isn't simply to stay within a renovation budget.

The goal is to understand the relationship between what you're paying for the property, what you're investing in the renovation and what the finished home will ultimately be worth.

Is the House Actually a Good Candidate?

Not every house is.

A property can have beautiful bones and still be the wrong renovation opportunity. Structural limitations, lot characteristics, zoning, the home's location within the neighborhood, or the scale of work required can all affect what is realistically possible.

We look at the property through both a visionary lens and a real-estate lens.

What could this house become?

And just as importantly:

Does what we could create here make sense for this neighborhood?

We study comparable sales and the surrounding market to understand what renovated homes are actually selling for. That helps our clients determine how much they can reasonably invest without losing sight of the property's eventual value.

This is particularly important in high-value neighborhoods, where it is possible to create a beautiful home that is simply over-improved for its location.

Bring the Right Professionals In Early

One of the biggest mistakes a buyer can make is purchasing a property based entirely on what they hope they can do with it.

We prefer to bring experienced professionals into the conversation early — often before an offer is submitted.

Depending on the project, that may include an architect, builder, designer or other trusted trade professional. (See how we've experienced this process ourselves)

Their input can help answer questions that aren't always apparent during a showing:

• Can the walls actually be moved the way you're envisioning?

• Can the addition you're considering work on the lot?

• What will the structural changes involve?

• Are there limitations that will affect the design?

• What is a realistic construction budget?

• Are there major infrastructure issues that need to be addressed first?

Getting those answers early can change the way you evaluate a property — and sometimes it can change whether you decide to buy it at all.

Inspections Are Critical

Renovation always involves some unknowns.

But there is a big difference between accepting that there will be surprises and failing to investigate the property before you purchase it.

A thorough inspection can uncover significant issues involving the sewer line, foundation, structure, roof, electrical, plumbing, HVAC and other major systems.

Those discoveries can materially affect your renovation budget.

Understanding them during the inspection contingency period gives you an opportunity to renegotiate, request repairs or concessions, adjust your renovation plans or, when appropriate, reconsider the purchase altogether.

The more you know before you buy, the better decisions you can make about what comes next.

Your Real Estate Agent Should Understand the Renovation, Too

We're not architects or general contractors, and we don't pretend to be.

Our role is different.

We've spent more than two decades buying, selling and renovating properties ourselves, and we've built relationships with experienced builders, architects, designers and tradespeople throughout the communities where we work.

That experience allows us to help our clients ask better questions and connect the right professionals at the right point in the process.

We've learned firsthand that renovation isn't simply about choosing beautiful finishes.

It's about making hundreds of interconnected decisions — and understanding how those decisions affect the property as a whole.

Think About the End Before You Begin

One of the most important questions we encourage clients to ask is:

What will this house be worth when we're finished?

That doesn't mean every renovation needs to be approached as an investment.

You should absolutely love the home you're creating and enjoy living in it.

But a real-estate perspective still matters.

If you're investing substantially in a property, you want to understand how the finished home will compare with other homes in the neighborhood. You want to know whether the improvements you're making are likely to appeal to future buyers. And you want to avoid putting so much money into a project that the economics become difficult to justify.

We call this having a resale lens.

Even when you aren't planning to sell, we believe it's smart to understand the long-term implications of the decisions you're making today. Our own renovation projects have given us firsthand experience with how design, construction decisions and the finished property come together.

Renovation Can Change What Is Possible

For some buyers, the perfect home simply doesn't exist on the market.

But that doesn't mean they have to compromise on everything they want.

Sometimes the right answer is finding the right property with the right bones, location and potential — then creating the home from there.

That's where we can be particularly helpful.

We don't just help our clients identify a house that could be renovated. We help them think through what is possible, what it will take to get there, and whether the entire project makes sense before they commit.

Our goal is to help clients make an informed real estate decision at the beginning of the process — not discover six months into construction that they bought the wrong house.

Considering a Home That Needs Work?

If you're looking at a property that needs renovation, we'd love to help you evaluate the opportunity.

We'll help you think through the property itself, the neighborhood, the potential scope of work and the professionals who can help bring the vision to life.

And if the numbers or the property don't make sense, we'll tell you that, too.

Want to see what we've actually done? Explore our renovation projects and see the possibilities we've uncovered in homes throughout Edina and the Minneapolis Lakes.

Because sometimes the best renovation decision is knowing which house not to buy.

Schaffer + Shaeffer
East Edina & Minneapolis Lakes Specialists
Buy. Sell. Design. Renovate. Build.