Thursday, February 18, 2021 / by Madyson Woolhouse
First & foremost: cost analysis!
It's essential to sit down & figure out how much this project will cost, & if it'll be worth it in the end. So, start with a simple equation: add up the costs to renovate (based on a thorough assessment of the condition of the house), then subtract that from the market value after the renovation (from comparable real estate prices in the neighborhood), then deduct at least another 5-10% for extras (emergency fund & inflations), whatever is left should be your offer.
According to This Old House, "the real estate contract [should] include an inspection clause." This is important because the inspection will either make or break the deal.