Budget Fix Up

 

Budget Fix Up

“What should I fix up, and what should I ignore?”

These tips are geared toward either gaining more value than they cost or reducing the time to sell, which also produces the highest value. A more complete list will be provided during the Listing Consultation.

I wanted to share with you a quick “cheat sheet” for rehabbing.

Here is a list of the improvements you should make to a property if selling or if buying. If buying can you get a house cheaper and apply these same tricks to get you the value that you wanted.

• Remove Clutter: You may not think of removing clutter as a “fix” for your home, but this is just as important - if not more so - than tightening up lopsided cupboards. 
• Fix the Little Things: Doors hanging on their hinges will instantly spell “dated” and moldy caulking can indicate “poor condition” to your buyers - not the impression you want to leave them with. Stop putting off all the little fixes around your home, especially when so many of them can be taken care of easily.
• Replace the Lights: Replace any lights that have gone out. Consider replacing some or all of your remaining lightbulbs with a higher wattage. You want house to be bright and cheerful, not doom and gloom.
• Kitchen and bathrooms: redo them from top to bottom. If you are not sure what materials to use, look at homes that have sold for top dollar per square foot in your area and copy them.
• Flooring: in most flips, use laminate hardwood flooring in the major living areas, and carpet in the bedrooms. Laminate hardwood flooring is difficult to tell apart from real hardwood. It is not only much more durable, and scratch resistant; it is also less expensive.
• Floorboards: replace with inexpensive floorboards when necessary. Do not go overboard.
• Paint: Paint every room in the home. If the walls have a lot of minor flaws in them, use flat paint. Otherwise, use eggshell. And always use earth-tones. Paint your front door black or with high contrast to the house can add 2.9% to the value.
• Landscaping: Some moguls stated that you get a $10,000 return for every $1000 you spend on landscaping. It is amazing what rocks, trees, and shrubs can do to increase the perceived value of the property. A good rule of thumb is to budget 1% to 2% of the final expected sale price of your home for landscaping. If you aren't selling that is a small price to pay for making your environment more enjoyable.
• Plant a couple flats of fresh flowers the day before putting the house on the market. This simple, inexpensive final step will put a ton of extra cash in your pocket.
• Roof: if the home needs a new roof, replace it. But factor this into your costs before you purchase the home.
• HVAC: Make sure the home has a working heating and cooling system. Air conditioning is now mandatory.
• Garage: Other than paint, do not spend much money here.
• Back patio: this is an often overlooked but very important area. A simple $1500 deck with two chairs, a small table in between them, and a couple wine glasses sitting on the table paints an awesome picture in the head of the potential buyer.

Make sure your general contractor has addressed each of these items in his quote. If you make these simple improvements, you will be able to sell your property for top dollar and maximize your profits.