Will You Fix It Or Nix It?

When you're house or investment hunting, do you like what you see? And if you don't, do you see a way to fix it up or do you nix moving forward with an offer? Good questions. Some buyers, when they see linoleum, wood paneling or a pink toilet might just run away. While others might be able to look past the "70's harvest gold appliances" to see a property's true potential. Financially, we should always consider purchase price and potential cost of repairs/renovations. If you are looking to flip it, whats your ARV and what are the comparables in that neighborhood? In addition, if you're an investor, what could you possibly rent it for or what would be the resale value? A lot of questions to ask yourself, but first and foremost, determine if what you are looking for is a quick "fix & flip" or an all out renovation and if you can actually make money with the property by doing so. Develop a plan and envision the before and after results.

Buyers, don't be afraid to envision your changes right then and there. Look at the overall structure of the house. Make a list of the positive and negative attributes, asking yourself on the negatives "Am I willing to fix them?" or "Can I live with them for a short while?" Linoleum can be ripped up and replaced. So can that pink tub or toilet, and even wood paneling can at least be painted out. Do you have the time and money to make the changes you want to make this your home, your business and your future?
A client of mine, in Pittsburgh PA, did just that. We looked and looked for the "perfect" home to refurbish. Finally we found a run-down split level just crying out to be bought and fixed up. On the surface it looked like paint, new flooring and yard work would do it. But 8 months later it still isn't finished! Why? As with any home you may buy, what lies behind the walls may be scary. As you get into a project you may find rotting wood, poorly done electric or plumbing, maybe even structural issues. Beware and be sure. Get that home thoroughly and professionally inspected once you decide to move ahead. That linoleum may be covering up bigger issues. And finally... be prepared for more than you expect. I've often seen projects started but not finished because the money for renovations ran out. If you can deal with some minor setbacks during the remodel, you may just end up with the prize you hoped for! So, good news in this case was that the home got finished, listed and sold for a great profit.

As a seller, you should also be questioning if you need to fix things around the house, or your investment property, to make it more presentable. So take a look around before putting your home on the market. A very inexpensive fix is a good coat of paint. Get rid of those aquamarine walls, opting for a neutral color. Declutter, declutter, declutter...and depersonalize! Best practice is that less is better than more when it comes to your "stuff". This means that prior to showing, get organized, get the carpets cleaned, rearrange furniture for better room flow and take down the family photos. Yes I know, having family photos is a wonderful cherished item to be displayed proudly. But when selling a home, statistics show that buyers don't want to see the home the way you see it, but as they mightsee it. Short of throwing down hardwood floors, remodeling the bathroom or tearing down walls to have that open concept, some minor things can be done to attract buyers.

Another client of mine kept saying they'll "get to it"...yes, decluttering their home. Potential buyers were walking through and walking out without really seeing the home because of the stuff everywhere. They are a busy family and I understand it takes time and effort to clear the home of clutter. But I kept asking myself, aren't they hurting themselves more by missing potential buyers who just leave without truly seeing the home? Yes, probably so. So take the time and put in the effort!!! It does pay off. In this case, based upon buyer feedback, the sellers are really working hard on organization. Therefore the response from potential clients has been very positive and we are close to selling their home.

So as I often say, you don't have to go it alone. A good agent can help a buyer see potential and be your second set of eyes when looking for the right home to flip or even renovate fully. They can also advise a Seller on how best show their home or investment property for maximum exposure and better response. And don't be insulted when your agent walks through your home before listing and points out what you should do! Likewise, accept your agent's advice when touring properties. Remember, they are in an out of these properties every day of their lives and can attest to what improvements help sell a place. We are all in this together!

So get our there and either find that diamond in the rough, or turn your current home into a gem. You can make your real estate dream a reality!!