Be Familiar with Your Market
Is the area known for its rising prices? Is the neighborhood a transitional one with a great potential of being there sooner or later? Knowing your market can help you pick the most desirable home while giving you a good idea of your profit margin. All neighborhoods have a not to exceed price. You should also know about it. It will be great if you can do your homework on the latest sales as well as the average days on the market to know the length of time that you have to hold the property before you go for a flip.
Do the Math
You need to figure out how much you will spend on the renovation and the house itself up to the last amount of dollar, and include the risks you are willing to take. Price out the expenses of carrying a short term loan if needed, utilities, maintenance, and taxes on the market for as much as one year. You must also price out the costs of labor and materials. Check comparable rates in the market to know about the possible sale price and never expect a penny over. If you have your own financial plan, with reasonable margin for risk, start shopping around for homes that meet that budget. Never let a big fixer-upper with potentially bigger returns muddle your mathematics.
Educate Your Buyers
Consider making a list. Disclose each system that was replaced from electrical to HVAC and any particular structural issues that were fixed. Take a snapshot of the new roof. You should also note the new windows. List the new fixtures and appliances and present a binder with instruction warranties and booklets. Show the instructions next to the new smart home features including sound system, lighting controls, and security. Let the buyers know each detail of how charming historic home is updated to the standards today.
Know Your Buyers and Renovate With Buyers in Mind
If it’s a neighborhood with good schools, your buyer will likely be a young family. The older homes might not have the open family or kitchen room that such buyers demand. Spend some of your money making family space inviting and open. See to it that there are bathrooms for children. If possible, you should also finish the basement. Never concentrate too much on the master bedroom, yet ensure that the parents have their bathroom as well. If it’s a retirement area, search for a home with a ranch style or a one main level. If there are some stairways, open these and widen the tight spaces.
It is always tempting to look at the renovation and overvalue your home. But, never consider overpricing
Posted by Randy Blaskeslee