What Repairs Should I Make to Get Top Dollar?
Some people get carried away and do too many renovations. They find themselves trying to sell the equivalent of the “Taj Mahal” in a blue-collar neighborhood.
You don’t want to flip the most expensive house on the block. Do renovations that bring a house up to standards on par with other houses in the neighborhood.
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 hard wood. It is not only much more durable, and scratch resistant; it is also less expensive.
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.
Landscaping: Donald Trump himself stated that you get a $10,000 return for every $1,000 you spend on landscaping. It is amazing what rocks, trees, and shrubs can do to increase the perceived value of a property. A good rule of thumb is to budget 1% to 2% of the final expected sale price of your home for landscaping.
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. In some areas 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.
Did you know? Investors are averaging $75,990 (gross) profit per flip. (Source RealtyTrac, November 20, 2014.)
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