Don't Put Lipstick On A Pig

When buying a home or investment property to fix up, are you looking to flip it, renovate it a bit more, or do a complete remodel? Often the terms are interchangeable but they really do mean different things to contractors and design specialists. But if you are not a design or structural specialist, like me, our ideas of a remodel may be different...and that's ok. What I take offense to is the quickest of flips with very minimal work performed. While you can put lipstick on a pig, it's still a pig.

Why not take the ugly duckling with potential and turn it into a beautiful swan? You know, like buying the worst house on the best street. Everything may boil down to how much money, time or resources you have to work with and the type of buyer you are looking to attract. There is a market for all types of properties. I typically don't take sides, but I do have a problem with buying a cheap property, slapping on a coat of paint and maybe replacing the carpet for very low cost and then trying to sell it exorbitantly higher than what was paid for it. This is what I call "putting lipstick on a pig". I understand wanting to do a flip at a quick turnaround making the most profit, but overcharging the next person for very little work that was done is just downright wrong. And it may be hiding health and safety issues that really should have been addressed. What you put into your investment can really make a difference in increasing your marketing appeal and ultimately your profit. So I advise not to put lipstick on a pig...rather go the extra mile and do it right. You'll be so glad you did like the owners of these properties:

Today, most buyers are looking or that "WOW" factor. And if you want that kind of reaction, spend the time and money by doing a full remodel, especially of the kitchen and bathrooms. Again, this depends on the audience you are looking for. Doing a quick flip to sell to another Investor at a reasonable price may be fine if that's what you want. Just like putting a little more into it to get it Section 8 compliant, for example. But if you are really looking to renovate for maximum effect and profit, consider what your target buyer might be looking for. Pay attention to design and flow. So no painting over mold, ignoring water damage, looking past loose wiring, cracked foundations, or drafty windows. You get it. This type of renovation should be move in ready with a very strong attention to detail. Not sure how to do it correctly? Consult an expert.

Recently I went into a remodel where there were beautiful hardwoods and a tastefully redone kitchen. But a laminate flooring that clashed with the hardwoods was chosen with an abrupt line of demarcation and, to me, while it was almost there, it missed the mark and fell short of a well thought-out plan. Believe it or not, sometimes what may seem like small things really do make a huge difference. So please ensure there are no gaps between the backsplash and countertops, that appliances are aligned in a logical and functional order and that cabinetry is accurately hung or that you are not mismatching metals. But also don't get so caught up on the bling that you forget the functionality. For example, when it comes to wiring, make sure you are not overloading circuitry or missing a GFCI near water. Likewise, proper HVAC systems are a home's central nervous system so they should be up to code and maintained or replaced. Railings are required for safety as well as fire/smoke/CO alarms, breakers vs. fuses, properly vented gas hot water tanks and fireplaces and properly lined chimneys. Misaligned doors and windows are huge mistakes. You get the idea...it's the details! Unless you are an expert at doing, skip the DIY and get help from someone knowledgeable who has references and finished projects you can see. Do it right the first time and you won't eat up your budget on a do-over. Once your project is done, consider dressing it up.

To Stage or Not to Stage

Ok so you've done all of that great work. Before going to market, strongly consider staging. Keep in mind that the first photos a buyer sees often persuades them to actually visit the property in person. Photos of a staged property give people a sense of size, volume and depth to an area. A home that is staged allows the buyer to envision what it would feel like to live there. It's been my experience that homes that are not staged often don't sell as quickly. So staging is well worth the money budgeted for it. In fact, a recent study of listing agents nationwide show a range of 6 to 20% increase in sale price of homes that were staged!

And don't forget the outside. I have talked a lot in my previous blogs about curb appeal for personal residences. This applies to investment properties as well. This is the first impression to anyone driving by and ultimately stopping to see your place. If the outside looks ratty, you run the risk of them stopping cold in their tracks and leaving before even seeing how great you remodeled the inside. You may not have to do that much and I realize that the time of year dictates how much you can do outside. But things like a presentable porch, a nicely trimmed lawn, proper and safe utility connections, sidewalks and driveways in good repair, even some well-maintained plantings (in season) can go a long way toward welcoming Buyers.

Again, I'm not discounting different types of renovations. There is a time and place for a quick flip, a remodel or a full blown renovation. But always come with a plan of action, a design and what you hope to accomplish before diving in. You really don't want to do things haphazardly by putting that lipstick on a pig!