If you’re getting involved in real estate, especially residential real estate, then one of the things you’re going to have to do before selling homes off is ensure that that property is in good enough condition to actually be sold. While it’s true that a proper shelter is all about having a roof over your head and four walls around you, if these items are in poor condition, or major home infrastructure is in question, such as poor plumbing, or older electrical wiring no longer compliant with current building codes, then these will hurt not just the value of a resale, but the appeal to buyers.
On the other hand, going overboard with the types of repairs and renovations you undertake can sometimes have the opposite effect of what you intended. Doing too much specific work can leave some prospective buyers with the feeling that they will have more work ahead of them to UNDO what you just recently paid money to have done in an attempt to broaden sales appeal.
So where do you draw the line when it comes to ensuring that money is well spent on renovations in order to increase the chances of a sale?
Fundamentals Always Matter
One thing you can never go wrong with when it comes to using a rehab loan for improvement is covering the basics. Plumbing and electrical are absolute necessities, and these should always be addressed, because if these aren’t in good working order and up to modern standards, there’s always going to be great difficulty in closing a sale.
Another area that should be looked at is the foundation. It doesn’t always get attention it deserves, which means that when something goes wrong, it goes disastrously wrong. A problem foundation can, given enough time, actually cause a building to tear itself apart as different parts of the structure start slowly moving in different directions. A professional inspection of a foundation can quickly find these problems and leave you with no sale if the problem is ignored once discovered.
Aesthetics Are Usually Optional
For residences that are being repaired and renovated for resale, going with “neutral” renovations that aren’t too cutting edge or trendy is usually a safe choice. Kitchens, for example, vary wildly in taste for what people want, so you may have renovated a house perfectly, only to find that what you’ve done in the kitchen is the opposite of what many buyers are looking for.
Even innocuous decisions like changing windows can make a difference to a sale. Putting in new, energy efficient windows is one thing, and a home benefits from that. But making front windows closed units that can’t open in order to save a bit of money during installation, may deter buyers who want to be able to open their windows and realize they now have to pay for the installation of new windows to replace the new windows you’ve put in.
Always remember when you’re renovating that you’re not trying to make this the home you want to live in, but make it as easy as possible for buyers to make the home that they want.