- Do you have the extra money to remodel the house?
- Do you have the time and knowledge to do the remodeling yourself?
- Do you want to sell or rent the property?
- Do you have the money to make mortgage payments if you can’t rent or sell?
If you are happy with your answers then continue on to the next step. Find a bargain and I mean great bargain. Most markets are not great for resale right now so you will need to pick up your property at a great bargain to make a profit. Be sure to have all inspections done so you do not end up with a nightmare. Even though you may fork out roughly $500 for inspections it pays to know what you are dealing with. There could very well be something wrong that you aren’t seeing.
Time is of essence. You need to move very quickly with remodeling. Unless you got extremely lucky and picked up a great house at a great price. Then just stick the for sale sign back in the yard. Most bargains need some work, even if it is just fresh paint and new carpet. Everyday you spend working on the house is one day closer to a mortgage payment out of your pocket. If the remodeling takes longer than accepted and cash is running out there is still hope. You can always refinance after remodeling the house, as the value will be higher. You should be able to get 10k out.
Know what you need to do to the house to get top dollar. You need to have the kitchen and bath as updated as possible. With both the kitchen and bath you involve plumbing. Before buying the house you may want to get a quote from a plumber. Plumbing work can be quite costly if you are unable to do the work yourself. As far as the kitchen goes you can probably get away with new cabinets and counter top. If you look around and your discounted hardware stores in the area you will be able to pick them up fairly cheap. They don’t need to be expensive just modern and clean. You may even be able to clean the old ones or restain them to save money. Add some greenery to the top of the cabinets if you have the shelving space. It brings color to the kitchen. Pain the kitchen with a bright color to make it stand out more. If the bathroom is outdated you many need to replace everything. Otherwise if the vanity, toilet and shower are in good condition then replace the flooring unless it is very clean looking and replace the faucets. Shiny faucets make the bathroom look very clean and new.
Now that the house is presentable it is time to sell or rent. We personally rent our property. The rent pays the mortgage while we build equity in the house and wait for the market to become a seller’s market. You have to make a personal decision what works best for you and your area.
Advertising is key in which ever route you go. We did not involve an agency in our home. There are many sites online that are free to advertise or for a very small price. Street signs generate a lot of calls. You will get many calls from your signs from all different price ranges. Usually a sign does not have the sale or rent price so you’ll get everyone interested calling. We’ve learned to mention the price fairly quickly in the phone call. It saves time in many cases. We personally had no luck with the papers but you may.
When showing the house to sellers or renters always have all the lights on and drapes open. You want the house to be as bright as possible. Another tip is baking some cookies in the oven shortly before your appointment. The smell of fresh baked cookies or anything makes a “homey” feeling. The person can then picture himself or herself baking for their family in the house. You do not have to serve the cookies to them. Eat them yourself! This is just a selling technique. Also, add some fresh cut flowers to the kitchen table.