Buying a Home to Remodel

Here in Portland, we have an amazing stock of older homes that can make for a great remodel project if you have the time and patience.  This can be a great way to move into an older home that will meet your needs and reflect your unique tastes.  Here is some advice that will help the home buyer that is looking for an older home to remodel

1. Don’t wait until spring to start looking for a home, fall and winter may be just the best time because in spring everyone starts looking and the right house may get snatched up quickly or the bidding may be competitive and you may end up spending more or settling for less favorable terms.  Also, the other benefit is that fall and winter are the best time to plan and design a project.  Then, you’re ahead of the game, you make less hasty decisions and we’ll be ready to rock and roll in the spring and/or summer when the weather is better.
2. Get preapproved by a good bank at good rates, then when you find the right house, you can move quickly.
3. As far as what to look for, here are a couple of scenarios.

Option 1: A house that is livable immediately, but needs some work or may not exactly fit your needs (ok because the design will fix that) but has the flexibility and potential to do so.  After you buy a house like this, you rent it out immediately to help cover the payments.

Option 2: A house that is a real dog, but has good bones and hopefully some good systems (plumbing is most important, but then electrical, then mechanical)

In either situation, believe it or not, the best situation is a home that has little or no insulation.  The reason is that most insulation has not been done well, or done totally wrong.  So, to fix it, you will have to pay to get rid of it, then pay again to do it right.  No insulation means a blank slate and an opportunity to do it right the first time.  Most homes built before 1978 were built without insulation.  However, most people have added some insulation throughout the years, but likely didn’t do it right.  It’s rare to find one with none, but I’d say 1 out of every 20 energy audits that I did were bare.

My favorite homes were built in the 1940’s or 50’s.  Early 40’s were the best.  This is for a number of reasons.  First of all, the homes were generally built very well.  There were still some of the old craftsman builders around that really knew how to build.  You will find some great details, tight fitting joints..etc. Home builders seemed to understand design and building science and took pride in their work.  Also, knob and tube wiring was gone.  knob and tube was the first type of electrical in houses and we can’t insulate over it.  It costs maybe  $5-$10k for an average house to eliminate and it’s difficult.  Some places you just end up leaving it because you can’t get to it.  I wouldn’t let this drive a decision, but it’s good to be aware of.  Lastly, they were built before insulation was required.  Sometimes I’ll find original insulation in a 40’s or 50’s house, but it’s uncommon.  This means we get to do it right!

However, some things can still make this difficult.  Look out for asbestos siding, or worse yet, asbestos siding over old siding with lead based paint.. a double whammy!  These things can be dealt with, but you should get a good deal to make up for the costs to remediate them.  Look out for asbestos insulation, floor tiles, popcorn ceiling, glues and tape on ductwork.  Again, these aren’t killers, but a good enough deal will allow you to afford to get rid of them correctly.  Look out for galvanized plumbing.  This was the most common type of plumbing until 1970, but often times it’s has been replaced in older homes already.  The problem with it is that it corrodes and the inside diameter gets smaller and smaller and the water pressure slowly but steadily diminishes.

These suggestions are a general overview of only a few considerations, but are some of the most commonly overlooked ones that can result in big dings to the checkbook.  Of course, your own general inspection and even the inspections of an experienced contractor can not take the place of a certified inspection, but knowing the ropes can help you save more time and money, and a help you get what you are looking for quicker.