All posts by Lorie

Ways to Spend a Renovation Budget for Max ROI

Ways to Spend a Renovation Budge for Max ROI

When renovating a property you need to remember that every penny spent has to be justified by the ROI.  You want to do all you can to get the max ROI for your property.
How much value will each renovation/upgrade add to your property?  How much more can you charge in rent with that renovation/upgrade?

Here are some ways to spend a renovation budget for max ROI:
Flooring:

If you are planning on being a landlord you will want to really think about investing in an invincible flooring.
For rentals I would avoid carpets and hardwood because they are very easily damaged.  Stick to luxury vinyl tile, (this can even come in waterproof options) high end faux hardwood or bamboo flooring.

Remember as a landlord it will be extremely difficult to turn a profit if you have having to replace the carpet every few years as you get new tenants.

Kitchen:

The kitchen is often called the heart of the home, so it deserves some extra special attention.  However you do not need to spend a ton of money on the renovations.
Look into painting the existing cabinets and updating the hardware.
You can update the counter tops by replacing them with a butchers block.  Have the butcher block cut to the dimensions of your counter top and make sure it is installed properly.  Another great cost effective idea is to paint the counters.  Use a nice glossy black paint and coat them with a shiny surfacing agent like shellac.  It is a great cheap, easy update and if your cabinets are white it will contrast well.

Bathrooms:

The number one thing for bathrooms is CLEAN CLEAN CLEAN!!
The biggest turn off can be a dirty smelly bathroom.  The entire bathroom should sparkle and shine with cleanliness.
If the vanity and sink are still in good condition, simply change out the faucet and add new hardware to the cabinets for a nice face lift.  You could also add a little paint to the cabinets to update and brighten the space.
If necessary you could replace the vanity, lighting and toilet for a lost cost.  This can give the whole bathroom an update look.  Also by adding a nice bright shower curtain you can change the entire feel of the bathroom.

Landscaping:

Many people don’t give curb appeal near enough credit.
The front yard should be immaculately mowed.  The bushes and shrubs need to be trimmed perfectly.  Edging the sidewalks can make a huge difference in how clean and crisp the walkways look.
A survey was conducted in 2016 by the National Association of Realtors and the National Association of Landscape Professionals to determine which outside projects offer the best value for homeowners.  A landscape upgrade was at the top of the list with estimated 105% return on investment.
Potted plants can be a great inexpensive way to add more color and make the walkway more welcoming.

 Paint:

The interior of the property should be freshly painted in all the rooms.  Using white can be universally appealing and does not look dated.  White can also be easily dressed up with accent colors.
Be sure to take your time doing the prep work.  Meticulously, precise taping can make an amateur paint job look professional.

If you are on a tight budget use your creativity to update your property, make it feel new and fresh and achieve your max ROI.

 

 

Real Acquisitions 

 

 

Benefits of Selling a Fixer-Upper

There are many benefits of selling a fixer-upper.

Selling a  house can cause a lot of stress and headache.   There are the Realtor fees, advertisements and the home inspections.  These can all be costly and time consuming.  If the house you are wanting to sell needs work, is it worth it financially to get it in selling condition?

Some questions to ask yourself when preparing to sell your property are:

Will I make more money if I fix the house up or if I sell it as is?
Do I have the finances needed to make the necessary repairs?
If not then how do I sell my house when I can’t afford to fix it?

It is necessary to make your home attractive inside and out to get top-dollar for a sale.  Small issues like wall color and replacing the appliances can be inexpensive and might not hinder a sale.  Structural issues that are expensive to repair such as plumbing, electrical or foundation must be made.    Remember that sometimes major repairs are only found after a thorough home inspection.

   When you are trying to sell a house fast that needs repairs, consider the harder to find repairs and what consequences it may mean for the buyer.  Most buyers will not pay the full asking price assuming that everything they can not see is in proper condition.

     It most cases it is much easier to sell a house faster after repairs have been made.  Is there a way to make structural repairs without emptying our finances?  Many times sellers make use of contractors.  Many contractors are able to handle small damage and short renovations.  However, to many have transformed beautiful houses into disasters or Frankenhouses.

CNN Money’s staff writer Les Christie says Frankenhouses are homes that feature renovated eyesores. Some of these are “pipes running through living rooms and bedrooms strung together like garlic cloves”.

   These types of houses offer buyers dysfunctional finishes and floor plans.  Most times they offer dreadful color schemes and downright inconsiderate room repurposing.   They are unappealing to most homebuyers and end up on the market for much longer periods of time.

   Using a contractor on a home that needs a lot of work to sell often comes with a steep price tag.  It also takes more time between the listing period and the closing date.  The best case scenario is the contractor does extraordinary work within the agreed timeframe.

   Is fixing major structural defects like roofing, pluming. septic system or foundation issues you want to work on?  It will mean spending thousands of dollars before you are even able to list your home on the market.

  You also need to be careful when renovating your home with contractors before you sell it because it can put off potential buyers.  When looking at cosmetic repairs, you are faced with highly stylized improvements that require the right individual tastes.  A style you like could be a deal breaker for a home buyer.

  You could sell to a Realtor As-Is

Many homeowners decide to hire a Realtor and sell their house without making any repairs is their only option.

Going this traditional route and using a Realtor to sell your house fast with lots of repairs can be tough enough; but selling a house that needs repairs including major ones, is almost impossible.

Jonathan Smoke, Chief Economist for Realtor.com, buyers have become more selective with a plethora of homes for sale.

Smoke predicts that six million homes will be sold this year alone, the highest amount of homes sold in a decade. With that kind of supply, sellers must expect more time on the market and fiercer competition.

      When you are trying to sell a house that needs repairs, your Realtor will often suggest you lower your asking price in order to shorten the time your house is on the market.   This can be great in theory.  The more time your house is on the market, the more you are spending on the mortgage, utilities, taxes and insurance.

    Using a Realtor also comes with added fees like commissions.  Yahoo! Finance’s Mandi Woodruff estimates that even after paying the buyer’s commission – generally 3% – For Sale By Owners (FSBOs) cut selling costs in half by avoiding their own broker’s commission. With a median household cost, cutting out a Realtor saves thousands!

Our Stress Free Option

If you are looking for a stress-free simple solution to selling your house look into a cash buyer.  No need for you to worry about making all those many needed repairs or paying commission.

   This may not seem unusual, but it is very common in today’s market.  In 2012’s Investment Issue of Forbes Magazine they said about 30 percent of homebuyers used 100 percent cash when purchasing.  This number has increased over the years.

  With the ability to skip the mortgage process cash buyers are able to offer a much quicker close.  With a cash buyer you are able to avoid banks and close and receive payment within about a week as opposed to the normal 30 days.

   The number one advantage to accepting a cash buyer is their wish to buy your house in as-is condition.  That means you don’t need to worry about those major repairs or updates.  The cash buyer wants your home the exact way is is and will offer fair market value.

  We would love the opportunity to talk to you about your house and situation.  We are here to help even if you make the decision to not sell your house.

Please contact us at 832-271-8184 call or text.  🙂  For a recorded line in English and Espanol please call 713-714-4960 (Vende tu casa)