Tweet This Rehabbing houses can be very exciting with all the decisions and plans of what you want to do to make an ugly house beautiful. Especially when you are working with older homes that may have been built in the early 1900s. It’s important to remember that rehabbing is a business, although it’s easy to forget that when your creative energy just seems to take over. You will have to make some hard decisions regarding what you want to do in relation to what you have to do and how these relate to the bottom line -your budget.
Tweet This When planning your rehab you will have to identify the things you must do to make the house appealing and to correct any issues that may impact safety or code. Then you have to determine your wow factors that will make your buyer fall in love with the house. Tweet This It’s important to address any layout issues with your rehab, as this may also impact your final sale. Kitchens and bathrooms sell houses so the bulk of your attention and money will be spent improving these areas and adding your wow factors.
So how do these ugly words (“Over Rehab”) come into play? Over rehabbing tends to come into play when you select finishes that are more expensive for the current local market of the house and/or that cut into your budget. This usually occurs because you pick things that you want or like as opposed to looking for value and maintaining a budget, rehabbing in line with other updated houses in your market. Another way of over rehabbing is making improvements on things that don’t add any value to purchase price like shower doors, windows, extra recessed lighting, etc… I’m not suggesting that you eliminate all of these ideas; however, you have to look at the cost versus reward and make sure you aren’t throwing money away. Pick and choose your improvements carefully and put more money in your pocket. Make your house look like a million dollars without spending top dollar. Look for tile that is on sale that may look similar to the more expensive tile. Look for shower doors that may be return stock and being offered at a discount or don’t install a shower door, leave that for the new buyer. Also look for builder’s auctions in your area where they sell excess building materials at a discount. Look for opportunities to improve your bottom line and watch your spending.
It’s also a good idea to tour other properties for sale in your market to see what upgrades they have done. It those houses are selling quickly enough for top dollar, then use them as a guide for what you need to do to your house!
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