subject: Fixing up Foreclosure Homes for Profit [print this page] Fixing up Foreclosure Homes for Profit Fixing up Foreclosure Homes for Profit
1. Remove all of the weeds and rake the dirt, rock, or grass clean. Do not add grass if you can help it. Add only rock cover. If you have to add any plants keep it to a minimum and add evergreens only. People want curb appeal but they also want low maintenance and a low water bill. Give them a clean landscape to work with, just like a painter with a clean canvas. They can move in now and add whatever they like later.
2. Paint the outside of the home two colors, even it was only one to begin with. Keep it neutral and go along with the theme of the neighborhood. Do not try to stand out by using crazy or obnoxious colors, you will only embarrass yourself and real estate broker
3.Repair any major safety issues (loose or leaning walls, dying trees, big holes in the ground), but otherwise keep it simple. REMEMBER, people are often buying a home because of the area or the price, NOT BECAUSE THEY LOVE THE PEOPLE THAT OWNED IT BEFORE. Always keep that in mind when making any improvement decision. You want to leave as little of a fingerprint as possible. Give them a clean livable canvas that they can style on their own.
THE INTERIOR
1.Use two neutral colors to paint the inside walls, ceilings, baseboards and doors. If the existing colors are neutral and in good shape, try to match them and touch up as needed. Paint the walls a tan color and the ceilings, doors and trim all in white. It is what is in right now, and won't cost you much extra, especially if the ceilings are already white and in good condition.
2.When it comes to the flooring, cabinetry, lighting, and millwork use this one rule, if you can't clean it then paint it. If it is in good working condition then THAT IS GOOD ENOUGH. Save the money and list the house at a lower price. You will get free real estate advice from propertyhookup
3.Make any repairs to your major systems: electrical, plumbing and mechanical. Remove any trash or unnecessary fixtures and clean the place so that you could eat off of it. People will be frightened by a dirty home because it gives them a glimpse of what might be lurking inside the walls (rats, mold, and dirt). They will care much less about an ugly cabinet or out of date lighting. They often want to put those touches in on their own and in their own good time anyway. As long as the place is clean and the fixtures are functioning, you are better off listing at a lower price then you are spending money on some of these items and charging a higher sales price. REMEMBER: People won't necessarily have the same tastes as you. Don't stick them with what you like.
If you'd like to get tricky with incentives and terms, then include a cash back credit of $2,000 for improvements into your price. Or offer $3,000 towards the Buyer's closing costs. Most people are only worried about getting into the home first. They often want to settle in and feel the place out before they begin adding their own personal touch. Always keep that in mind and do your best to do these three things:
1. Help them financially get into the home by lowering the price, or offering incentives.
2.Give them a fully functioning house that is free of major defects.
3.Otherwise, give them a clean canvas with which to style their new life.
You will find that you make just as much money a lot faster by using these techniques. When you find the theme that works for you then stick to it. Out of the 600 homes that I rehabbed I will tell you that over 200 of them have the exact same paint color, carpet and tile, and not one owner knows the difference. My repair crew had a fixed system, they knew what the homes were supposed to look like, and they were able to reduce costs by buying in bulk. I hope this article helped. Good luck.
