There are lots of advantages of doing home repairs (or renovations) before listing it as for sale. Basically, a home with less damage and had undergone renovations and repairs will increase its worth than those being listed as is, with no repairs whatsoever. Now, depending on the severity of damage in both the interior and exterior of the homes is the type of home repair you need. Remember that the goal of doing the extra effort of home fixing is to appreciate home’s value, and spending extra cost on repairs you don’t actually need will defy that purpose.
First thing you need to know is the worthiness of house staging for real estate investors. To know the answer to this very important question, G. Brian Davis of Lending Home explains thoroughly house staging and its impact on real estate investing in general.
Is Staging a House Worth It For Real Estate Isnvestors?
Image Source: Lending Home
You’ve renovated a house to flip it. Congratulations! Now it’s time to pass it over to a Realtor and put your feet up, right?
Not necessarily.
Your job as a house flipper doesn’t end when the last nail slams home. Ultimately, you’re the one on the line for soft costs like the monthly hard money loan payment, paying the utility bill, insurance, and so on. Every month that goes by, your profit margin slims.
One option to do just that? Staging houses on a budget.
The benefits of home staging: sales price
Does staging a home for sale actually work?
According to most buyers’ agents, it does. A study by the National Association of Realtors (NAR) found that 97% of buyers’ agents reported that staging had some effect on how buyers view prospective homes.
While staging can certainly help boost a property’s price, it can’t perform miracles. Make sure you have a firm grasp on pricing strategies as a house flipper before setting a sales price.
Is staging a house for sale worth it?
Not every house should be staged. Part of learning how to flip a home is understanding what’s effective in different markets and neighborhoods, which goes doubly for marketing your home to sell fast.
Nor is staging a one-size-fits-all proposition, even for properties that can benefit from it. Consider the following options at varying price points:
Hiring a full professional home staging service
Staging a couple key rooms with furniture on your own
Staging without furniture by simply adding a few touches throughout the house
So how do you decide which properties are worth staging, and what degree of staging to do for each?
First, consider the value of the property and the prospective buyers. If you’re flipping a house to a landlord as a turnkey rental, staging won’t persuade your pool of buyers. See full post here…
Then again, home repairs and renovations must be done to increase the home’s value. However, not every house should be staged or renovated. You might end up spending more than your profit. Always study first what’s effective in your market and neighborhood. In addition, if you think you can’t perform the repairs on your own, it won’t hurt to hire a professional to get the job done.
Going back, there are parts in the house that don’t need for repairs and Sasha Brown-Worsham of Realtor.com mentioned the things not bother fixing first. Read the article below to learn more.
Selling Your Home? Relax! 5 Things to Not Bother Fixing First
Image Source: Realtor.com
Selling your home? Then you’ve likely had that rude awakening where a real estate agent tours your home and breaks some tough news: Your house needs work before it goes on the market.
For starters, you’ll have to fix the boiler. And paint. And replace those outdated cabinets … the list might go on and on.
Given that all these tweaks cost money, you might wonder: Do I have to do everything?
Many of these fixes are indeed necessary, says Kathleen Kuhn, president of HouseMaster, a national chain of home inspection offices.
“Any defect or condition that affects the intended function or operation of a major house system should be fixed,” she says. This would include taking care of leaks, built-in appliances not functioning properly, insect infestations, plus any imminent safety or environmental hazards.
1. Fixing cosmetic damage
Cosmetic damage includes things such as scuffed floors or peeling paint: They don’t interfere with the function of your home, although they do make it look run-down. The good news is, a keen home buyer knows to look beyond that, says Craig Webb, editor of Remodeling Magazine.
“Sophisticated home buyers and home flippers know that cosmetic damage can be easily fixed,” says Webb. What will give them pause is the hard stuff.
2. Updating kitchens and bathrooms
So your kitchen is woefully outdated, your bathroom avocado green (yuck). That may be OK. Really.
The reason: Many buyers these days look forward to remodeling these “fun” areas—plus, trying to second-guess what they want and have it there waiting for them is just plain unrealistic, given all the home decor styles there are to choose from today.
3. Doing partial fixes
If you do decide your kitchen and bathroom are so bad they’re worth redoing, don’t go halfway. Unless you can redo a whole kitchen, don’t bother with partial fixes. Older cabinets with brand-new granite countertops only highlight the old.
In home repairs before selling, it is vital to focus first on the top priority home areas that contribute to home’s appreciation. Also, don’t bother with partial fixes are also not recommended to do partial fixes. Cosmetic damages do not affect the functionality of your home, put it at the end list of repair priorities.
Lisa Smith of Investopedia identified the different types of home renovations, and which of them actually boost your home’s value. Check out her article below to find out more.
4 Types Of Home Renovation: Which Ones Boost Value?
“Fix it and flip it” is a phrase often associated with real estate. With this in mind, many homeowners undertake major renovation to their residences before putting them up for sale: Sprucing up the place will always send the sales price soaring, right? Wrong. More often than not, these upgrades fail to pay for themselves. Read on to find out how to renovate strategically and which sort of projects really add value to your property.
The Difference between Investors and Owners
Updating an investment property is generally a sound strategy – if it’s done the right way. Successful advocates of the fix-it-and-flip-it philosophy are investors, with the investor’s mantra of “buy low, sell high.” So they purchase run-down homes at bargain prices and save money on the repairs by doing most of the work themselves. A little sweat equity goes a long way toward making a real estate investment profitable. They carefully choose their remodeling projects,too, focusing on those that will result in the most value for the least amount of effort and cost.
Part of the process includes paying attention to the other homes in the neighborhood to avoid over-improving the property. If none of the other houses in the area have crown moldings and Corian counter tops, adding these amenities is unlikely to result in a significantly higher selling price.
The Basics
The basic are the things that buyers expect when they purchase a home. This includes a roof that doesn’t leak, functioning gutters and downspouts, a dry basement, a reliable furnace, solid floors, walls that are in good repair, retaining walls that work; most potential buyers also expect your home to have functioning plumbing and HVAC systems. In upscale properties, the basics might also include a certain number of bedrooms, bathrooms and garages, and any other amenities that are common to the neighborhood.
Curb Appeal
Items that add curb appeal help the property to look good when prospective buyers arrive. While these projects may not add a considerable amount of monetary value, they will help the place sell faster. Curb appeal items include a well-manicured lawn, low-cost landscaping, fresh paint inside and out (at least, the front door), cleaned carpets and new fixtures (even redoing the address numbers). You can DIY these projects to save money and time.
Adds Value
The projects that add considerable value are big favorites of fix-it-and-flip it advocates – and they should be high on a homeowner’s list too. While most of these efforts will not recoup their costs, some will come close. The National Association of Realtors cites new siding, kitchen renovations (new countertops and state-of-the-art appliances) and new windows as some of the most beneficial projects, often recouping 80% or more of their costs during resale. Learn more here…
In general, doing home renovations, repairs or house staging before listing your home as for sale helps a lot in increasing home’s overall worth. However, there are pitfalls that could incur additional cost on your end. Always follow the plan and just focus on the priority.
If you’ve done all the necessary repairs and is now ready to put your home into various listings, we at Dependable Homebuyers help you put your home into different home listing sites in Baltimore, Nashville, and other areas. To get started, visit us at https://www.dependablehomebuyers.com and we look forward to talking to you.
