We’ve all been sucked into real estate ads promising great potential, only to see the property and wonder how it wasn’t condemned. If you’ve been to an inspection and wondered how something seconds from disaster could possibly have ‘good bones,’ you’re not alone. Discerning the dreamy from the dilapidated is part art, part skill and it’s something that most first home buyers don’t have. Looking past peeling paint is one thing but spotting a diamond in the rough is another. Here are 5 tips to help you spot property potential.

Call In The Experts

If you’re buying your first home, chances are, you’re not a building expert. If you can’t tell the difference between cracks and concrete cancer, get a building inspector. It’s a relatively small price to pay for a make-or-break decision. An expert eye can see past the putrid and spot potential and on the flip side, can help you avoid making an expensive mistake. A building inspector can see what your untrained eye can’t, including the condition of the roof and the health of the foundations as well as checking for any asbestos. ‘Potential’ can often come at a price, so get professional advice so your dream home doesn’t turn out to be a dud.

Ignite your Imagination

Most first home buyers will look for a property that’s move-in ready. Properties that need a little TLC are often lumped in the ‘too hard basket.’ Most first home buyers will walk through a run-down property and take it at face value, only noticing the peeling paint and dirty carpet. If the layout, size and location ticks your boxes but the dirty carpet is holding you back, it might be time to ignite your imagination. The best bargains are often found where other buyers can’t see the true potential. So if you’re open to minor cosmetic fixes, you might be onto a winner.

Good Bones

If you’re new to house hunting, knowing what gives a property good bones can be tricky. Features like natural light, air flow, solid construction and layout all piece together to make the bones of a place. If the house is rundown with dated decor but has solid infrastructure, then it may be a home with good bones. You don’t need to be a builder to spot the basics, but you do need to know what to look for. Take a walk around the outside of the house and keep your eyes peeled for any major cracks, leaks, sags or red flags. Notice the wiring and plumbing and lookout for signs of rust or wear and tear. Check the orientation of the house, north facing windows in living areas are preferred, to see what sort of natural light you’ll get and factor in if the addition of skylights or additional windows could make the property lighter and brighter.

Know The Neighbourhood

Potential isn’t just about your four walls, it also has a lot to do with the area. Being a first home buyer is all about finding the right balance between lifestyle and livability. With a limited budget, you ideally want to find a home that allows you to grow, in an area that you love. Moving a little further afield can give you a lot more bang for your buck, but it can also make discerning potential harder if you’re unfamiliar with the suburb. Get to know your potential neighbourhood by looking to see what cafes and bars are opening. Spend some time looking for signs of development and monitor how prices are tracking. With the right research, you might find yourself sitting on a goldmine in a few years.

Development Potential

A run-down house on a large block of land might look like a nightmare to some or a development opportunity to others. You might not decide to build a block of units on the land, but in time you may want to build a granny flat or convert the house into a duplex or dual residence. Regardless of whether you’re ready to make that choice now, it pays to think about whether it’s possible or not. When it comes time to sell your house, you’ve got the added value of potential for the right buyer with the right budget.