Friday, October 23, 2015 / by Bill Berning*
As a real estate investor, you want to get the best returns on a renovated property. Planning is a key component of guaranteeing the success of the deal.
When you decide to make an investment in renovating a property to sell for profit, you must act quickly. Every minute of time wasted means an opportunity lost. As a result, you need to have a solid renovation and selling plan in place to guarantee your success.
If you have decided to renovate a home in order to sell it, you will need to come up with a plan. This plan should begin with a qualified real estate agent that can help you to assess the worth of the property before and after you make any changes. In addition, this team should also include lawyers, accountants, and tradesmen that can help you achieve the goals of your investing plan.
Selling a renovated home doesn’t always result in a profit. However, there are certainly ways to improve the odds that your real estate investment will result in a return. Here are the top five tips for selling a renovated home for profit.
Focus on the Right Renovations
Before you even consider selling, it is important that you do your research to make sure that you have made the right renovations on the home that will bring you the best profit. Not all home renovations increase the value of a property. In addition, you will also want to make renovations based on an in-depth knowledge of what your buyers are looking for.
"Home improvements that increase the value of a home might include upgrading kitchen appliances, repainting the home’s exteriors, installing additional closet storage space, upgrading the deck, and adding green energy technologies." says Heather Levin of moneycrashers.com. "On the other hand, avoid home improvements that won’t increase the selling price, like installing a pool, installing a whirlpool bath, or adding a sunroom to the house."
The best way to determine if you are making the right renovations is to do the numbers. Calculate your investment in renovations and compare it to the outcomes that you might expect in terms of buyer offers on the home once the renovations are complete. A local real estate agent can help guide your decision making by giving you information on other properties in the area and the amenities that they offer that buyers care most about.
Clean Up the Exterior
Before you even think about listing the property for sale, you need to do a thorough clean up of the exterior of the home. While remodeling work for the home itself might be out of your budget for the renovation, it costs nothing to pick up garbage off the lawn or mow the grass and pull the weeds.
“The single most cost-effective investment you can make to increase the value of your home is to buy a roll or two of plastic trash bags. Stuff them with junk outside the house -- from beer cans to raked leaves.” says Holden Lewis of Bankrate.com.
The first thing that buyers will see when they come to an open house is the exterior. You don’t want to scare them off before they can even see the gorgeous renovations that you made to the interior of home by leaving the outside of the house in disarray.
If you do have the budget, consider hiring a landscaper to plant some new flowers or shrubs to spruce up the exterior of the house. It doesn’t take much money in order to get the exterior of the home in decent shape. If you don’t have the budget, make sure that you allot time in your schedule to clean up around the home before you consider putting the home on the market.
Control Your Costs
It is essential that you set a budget for the renovations that you want to make on a home. Talking with a qualified real estate agent before you decide to make an investment can help you to get a realistic estimate on what you stand to make.
You can also lower your cost on renovation work by developing relationships with tradesmen in the area. If you plan to renovate multiple properties at once, or require a bulk order of supplies, you may be able to obtain discounts. In addition, you should never overlook the option of used materials, such as refurbished appliances and used fixtures, for your rehab job because you can likely save a bundle.
Find the Right Real Estate Agent
Working with a real estate agent that you can trust to guide you throughout the process can also help you sell for maximum profits. In addition, this agent may also be able to guide you to properties that could potentially be sold at a profit when you are ready to invest in your next property. Go with someone that has experience in selling homes that have been renovated in order to get the best bang for your buck.
If you want to become a successful real estate investor, you must go into every renovation project with a clear plan that illustrates the costs of the project, as well as, your solutions for getting the property sold. If you have experts in your network that can help, you’ll job will be even easier and you will be much more likely to turn a profit on your renovated home.