Value Increasing Tips
Minor Maintenance Improvements on Distressed Foreclosures:
Savvy real estate professionals know that aside from location, the most important aspect of a property is the condition of the structure and the major systems (plumbing, electric, HVAC). In most properties, these items are in working order, so what elements make the difference in a property selling at top fair market value verses one selling far below the other comps in an area? Clean properties in move-in condition bring the fastest highest retail sales.
Landscaping: The first impression of a property is always made before a potential buyer has even stepped out of their car. The view from the curb should not give the impression of neglect. Adding colorful perennials, annuals and mature shrubs is an inexpensive way to warm your potential buyer to a property nul should not give the impression of neglect. he time a potential buyer has stepped.
Pressure washing: Take years of grime off driveways, porches, decks and siding by pressure washing. Pressure washing puts “like new” sparkle back into previously neglected properties.
Paint: Paint is one of the cheapest but most effective improvements that can be done to a neglected property. Out-dated, unappealing, flaking, scratched paint can make a huge difference on the shutters, siding, trim, garage, and interior. Along the same lines, if a house was built prior to 2000, most likely the wallpaper will be outdated and need to be rem
oved and replaced with a neutral paint. Perhaps the buyer would like to put wallpaper in a room at some point, but a neutral paint will allow them the blank slate to envision putting their personality into the home verses not being able to get past a busy outdated torn or bubbled existing wallpaper job. Popular neutral colors can make a massive difference in a property’s charm.Flooring: Considering most people outside of the real estate industry have never seen a property without some type of installed flooring, attempting to sell a property with bare plywood or cement flooring at a fair market value is impossible. Flooring is normally the highest repair cost on the distressed foreclosures that we choose to rehab; however, clean existing flooring is essential to selling at top FMV (fair market value).
Appliances: The ultimate red flag that a property is a foreclosure is the missing oven. The vacant spot with only clumps of messy wires remaining, not only seems to buyers like a lot of effort and expense to replace, but more devastatingly it gives the appearance of vandalism. Someone either legal or illegal came through and ripped crucial fixtures right out of the wall and/or ceiling. We definitely don’t want our buyers to get the wrong impression that a house is in a high crime area.
Lighting fixtures: Just as mentioned above, vacant spots with dangling wires are a huge turn off to buyers. A $30 dome light or a $70 ceiling fan and light combo, can equate to hundreds of dollars in your seller’s net profit.
Countertops: Cracked, burnt, stained or outdated kitchen countertops can almost always be replaced inexpensively with precut replacements from Lowes or Home Depot for about $180. For those real estate professionals who say, “fix everything you can see,” rank countertops high as an essential item to replace when needed. Also, lost cabinet handles or doors are cheap to replace with big payoffs.
Plumbing fixtures: If the toilette is 70’s lime green, the $150 replacement would be well worth digging off the old wax ring; however, most of the time, a new $24 seat is all that is needed. Many faucets and drains begin to rust or corrode after seven or so years. Updated plumbing fixtures help give properties the “like new” fresh quality that brings the highest possible FMV. Along the same lines, re-grouted tile and thoroughly cleaned bathrooms are essential to providing the move-in ready properties that buyers love.
