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Just a Few of Our Top Rehabbing Tips

By
Real Estate Agent with Copeland Group Realty

REHABBING HOUSES IN TODAY'S MARKET

My investor isn't a beginner, but he's putting about $50k into each project. My job is to make sure he makes the right choices and saves much money as possible. Keep these tips in mind BEFORE you buy:

  1. Always know your final sales price. Base your final sales price on homes that have SOLD, then work with a market expert to calculate where that price will be once your project in done. They should give you a high, middle, and low range.
  2. Don't over-improve. This can sound simple, but investors think wood floors and granite counter-tops will always get them a great return. Wrong. Why buy a higher-grade finishes, appliances and fixtures when the step below will suffice?
  3. Don't cheap out. This sounds contradictory to tip #2, but it's not. Some investors cut corners on finishes because they've gone over budget. Buyers won't immediately notice the stellar job on the foundation or plumbing, but they will notice a vinyl floor in a neighborhood where ceramic tile or wood is standard. Fix major issues first, but choose wisely when you downgrade finishes.
  4. Know your buyer. The type of finishes, floorplan, landscaping, etc. will all depend on your potential buyers. Understand who is buying, renting and selling in your area. More importantly, know when you've priced out a particular type of buyer and which drawbacks (like a busy street) will completely scare them away.

These are just a few tips that can keep you out of trouble.

Comments (2)

Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection
These are very good tips.  Most people tend to over or under improve the property.   I think one of key ingredient to being successful at this, is to identify your target buyers.
Sep 29, 2007 01:36 AM
Ethan Dozeman
Realty Executives Platinum Group - Grand Rapids, MI
Real Estate in Grand Rapids
Under #1, if you want a fast sale, figure you want to sell your finished home 10% below what the current market is doing, in and out fast.
Sep 29, 2007 08:39 AM