When I walk through a home that needs work, I start by separating cosmetic work from structural work. Fresh paint, worn flooring, dated fixtures, and a tired kitchen are usually straightforward to price and schedule. Foundation movement, major roof damage, outdated electrical or plumbing, sagging floors, and signs of water intrusion are different: they can affect safety, financing, and resale, so they deserve a closer look before you fall in love with the layout.

That is why I recommend getting contractor estimates before you offer, not after. Walk the home with a contractor when you can, or share photos, measurements, and a detailed scope. Ask what is included, what is not, and how long the work should take. A line-by-line scope you can compare is far more useful than a single lump-sum guess.

Next, check permits and watch for scope creep. Ask whether past work was permitted and whether your planned work will need permits or inspections. Unpermitted work can cause problems later, and a project that starts as a cosmetic refresh can grow quickly once walls are opened. Put the scope in writing, agree how changes will be priced, and keep a record of every change.

Build in a contingency as well. Even with a careful inspection and a solid estimate, older homes hide surprises. Money set aside for the unexpected — not for upgrades — helps a small surprise stay small instead of becoming a deal-breaker.

Finally, connect the renovation to your offer through after-repair value thinking. What would similar renovated homes nearby actually sell or rent for, and what would it cost to get there? Your offer should leave room for purchase costs, renovation, contingency, holding costs, and a margin for risk. If the numbers only work when everything goes perfectly, the property may not have the potential it first appeared to have.

When you evaluate a fixer, what do you check first — the structure, the contractor estimate, or the renovated comparable sales — and why?