How do I determine if a home needs major renovations?

How do I determine if a home needs major
renovations?

Is Your Home About to Break the Bank? Read This First.

Don’t guess. Know when a house needs major renovations.

You can spot a cosmetic facelift from a mile away. Major renovations hide in structure, systems, and code. I’ll give you a straight, actionable plan so you stop losing time and money.

Quick red‑flag checklist (look for any of these)

• Roof older than 20–25 years or visible sagging and leaks.
• Foundation cracks wider than 1/4″ or sloping floors.
• Persistent moisture, mold, or chronic basement flooding.
• Old electrical: knob‑and‑tube, aluminum wiring, or frequent breaker trips.
• Old plumbing: polybutylene pipes, repeated leaks, low water pressure.
• HVAC systems over 15–20 years or inconsistent heating/cooling.
• Load‑bearing walls removed, sagging beams, or major structural alterations.

Any single item above can mean major work. Multiple items mean major budget and schedule impact.

How to measure “major” — a practical rule

1. Cost threshold: if estimated repair costs exceed 20–30% of the home’s market value, treat it as major.
2. Scope threshold: if work requires structural changes, whole‑house rewiring, or moving/adding load‑bearing elements, it’s major.
3. Permit threshold: if the project requires multiple municipal permits and inspections, factor in time and extra costs.

These rules separate a paint job from a project that needs planning, financing, and professional oversight.

Step‑by‑step decision plan (do this now)

1. Walk the property with purpose. Use the red‑flag checklist and take photos.
2. Order a professional home inspection. Focus on structure, roof, electrical, plumbing, HVAC, and drainage.
3. Get written estimates from licensed contractors for any flagged items. Ask for line‑item costs and timelines.
4. Check permits and local zoning—especially for additions and foundation repairs.
5. Calculate repair cost vs. after‑repair value (ARV). If repair cost + purchase price > ARV or leaves little margin, don’t proceed.
6. Prioritize: safety and structure first, then systems, then finishes.

Financing and ROI—don’t be naive

Major renovations often need construction loans or renovation mortgages. Factor carrying costs: interest, insurance, property taxes, and delay in sale or occupancy. Evaluate ROI: kitchens and bathrooms give the best returns, but structural fixes simply preserve value.

Final decision: buy, renovate, or walk away

If inspections reveal structural or system failures that push you past the cost threshold, pricing must reflect that risk. If the seller won’t adjust, walk away. If the numbers work, create a contract clause requiring permits and contractor insurance before closing.

Tony Sousa is the local expert who reads properties like blueprints. For a no‑nonsense assessment, contact Tony at tony@sousasells.ca or 416‑477‑2620. Visit https://www.sousasells.ca for local market insight and vetted contractor referrals.

Takeaway: don’t let charm blind you. Use the checklist, get real estimates, and make decisions with hard numbers, not hope.