Television shows on HGTV and other networks have portrayed the fix and flip process as seamless and easy with a quick payday at the end. However to get buyers’ attention and sell a property quickly, the final product must have some wow factor. A successful real estate investor knows how to impress buyers with an amazing product while maximizing profit at the same time.
Here are some helpful tips for obtaining a quality finish without blowing your budget.
GET BUSY IN THE KITCHEN
The lion’s share of your renovation budget should be spent creating a kitchen that buyers will fall in love with, but remember to save money where you can. Replacing cabinets can be expensive, but you can make them look new again without spending a fortune . If they’re dated, consider resurfacing them. If they aren’t dated, a coat of primer and paint will do the trick. Add nice hardware pulls to complete the look. Buyers want granite counter tops in properties with a price of $125,000 or above. In houses below $125,000, consider resurfacing countertops. Don’t go cheap on the sink faucet, but you can often find good sales on higher end faucets at home improvement stores.
BUDGET FRIENDLY BATH UPDATES
Updated bathrooms are just as important as kitchens for most buyers. Take care of easy, inexpensive fixes first, such as new caulking around tubs, sinks, countertops and showers. You should add a fresh coat of paint on the walls in a neutral color. Clean dingy grout or replace when necessary. Also consider resurfacing or painting cabinets and updating fixtures. Add a new shower curtain to coordinate with the color scheme. Replacing tubs is expensive, but tubs can be resurfaced for about $100.
FLOORING WORTH STANDING UP FOR
Hardwood floors are in style, but they can be costly. If the house has hardwoods under carpet, refinish them. For high-end properties, they might be the best option, but in moderately priced properties laminate, large tile flooring or carpet are good options. Always choose neutral colors. You can get a great return on your carpet investment by going with less expensive one. There are some great ones on the market for as little as $12 a square yard.The key to an expensive feeling carpet is to use a better pad. Use a 10-pound pad to make cheaper carpet feel more luxurious.
A LITTLE PAINT GOES A LONG WAY
Paint interior walls with neutral colors, but avoid white. Add high-end appeal to a room by adding chair rails and painting the wall above and below the rail different, but complementary colors. You also can go with wallpaper, which is making a comeback, but use it sparingly. Mirrors make rooms look larger so consider using them to create a spacious effect in any room.
UPGRADES BUYERS LOVE BUT…
- Buyers want new windows, but at a cost of around $350 each, they may not fit your budget. A good alternative is to replace the glass, which will cost you only about $100 per window.
- New light fixtures can completely change the feel of a room and they won’t break your budget, but choose carefully. Avoid hard HID (High Intensity Discharge) lighting or any harsh bright light. Consider installing under cabinet lighting. Small LED light strips under cabinets are trending now. Also updating electrical switch plates is expensive but makes a big statement.
- Replacing outdated doors and handles is very inexpensive but can create a clean and fresh look for around $50-$75 per door. Make a great first impression on buyers with a new front door.
- If your property has a basement, finish it out for a faster sale. Show buyers how the room can be used—think Man Cave or craft room.
- Get buyers in the door by creating eye catching curb appeal with nice landscaping—mow the lawn, rake leaves, trim shrubs and add colorful flowers. Be sure the walkways are clean and in good repair and repair things such as broken shutters, damaged siding or cracks in the driveway. Signs of disrepair give buyers the impression that the house is in poor condition.
- Finally, consider renting furniture and accessories and then hire a professional stager or interior designer to make the house look and feel like a home. Any expense will be more than covered by the higher sales price you’ll be able to get as a result.
Turning your investment property into the jewel of the neighborhood shouldn’t blow out your budget. Investors who plan renovations carefully and spend wisely will be rewarded with faster sales and larger profits.
ABOUT LONGHORN INVESTMENTS
Longhorn III Investments, LLC is a direct private lender offering short term acquisition and renovation capital to real estate investors for both residential and commercial assets. We operate in major metropolitan areas throughout Texas, Missouri, Indiana, and North Carolina. Highlights of our loan program include:
– Up to 70% of ARV (after repair value)
– Finance up to 100% of cost
– Close in 3 – 5 business days
– No income requirements
– Streamlined, simple approval process
– No pre-payment penalty
Longhorn was formed in 2008 and has funded over 1600 loans since inception. Our complementary businesses include a title company and real estate law practice operating out of our corporate office. Our wealth of experience puts us in the unique position of being able to help investors through all aspects of each transaction.