Renovations can make or break a real estate deal. While renovations can increase the property value drastically, certain renovations can end up costing investors more than they’re worth. Properties which pass inspections may need little improvements and renovations to increase the value of the house.
Phil Pustejovsky discusses in his video how simple cosmetic changes can turn an ugly and unwanted house into a profitable property.
- The home he discusses first focuses on the 9 year old discolored roof which may lead inexperienced rehabbers to replacing the entire thing, Pustejovsky instead offers a “creative” solution; clean the roof. The same thing can go for tiles, grout, walls, and more.
- Consider the materials used in the surrounding neighborhood and try to match the quality. Also consider the potential use of the property. Generally, less needs to be done with properties which will be rented out.
- Decide how much or how little paint, primer, and other wall-treatment methods are needed. Some properties may just need a new coat while others may need the ceiling resurfaced, walls painted and primed, or holes patched.
- Not all carpets can be cleaned to be acceptable. Padding may be the biggest problem, but the carpets may need to be completely replaced (maybe even a change of floor type).
- Some walls may need to be removed or altered and sections of floors may need to be lowered, raised, or leveled. Skylights may look tacky or out of place and they can be removed, or altered.
- Kitchens and bathrooms are vital! Many buyers will spend a lot of time focusing on kitchens and bathrooms.
o Cabinets can be painted but it is sometimes cheaper to replace all cabinet doors. Similarly, countertops may need small repairs but it can be more cost effective to replace the entire thing.
o Keep appliances simple, clean, and cheap. Ovens and refrigerators can be expensive, but the newest models are not required—just ensure they match.
- Simple yard maintenance (trimming, mowing, etc.) may solve a lot of property problems. However, termites and mold outside can increase the maintenance needed before selling. Also, accentuate elements like if it’s a waterfront property or for specific foliage. Just be careful with HOA guidelines.
- Water heaters, electrical meter, washer-dryer hookups, and air-conditioning units may need to be replaced, or they need to have some maintenance performed on them. There are simple ways to find out when an A/C unit was last inspected or if it needs a simple fix like new Freon.
During the property walkthrough before buying don’t hide the fact that you’re taking notes when you see things which need to be changed, altered or fixed. Subtle expressions and obvious inspection will show you know what you’re looking at and it can bring those issues in the property to their attention and decrease the property price. Also, never be afraid to write too much when you’re taking notes at any stage of rehabbing and buying property.
Justejovsky uses a home which belonged to a hoarder and is fairly critical about things that have nothing to do with the actual property or property value. However, his information and tips are sound, though the property at a different stage could have been more convincing and less distracting. Watch the video for more detailed tips and tricks.