We know that once the boom has gone out of the real estate market, we have to adapt our profit-making strategies to fit. It’s no longer enough to make a few cosmetic repairs and depend on the market values to push up the price like we did when there was a boom on.
After some time it will become a little more challenging to find the right kind of real estate to purchase. Remember, before the market flattened it was okay to do some light cosmetic fixes that would make the home look better without costing too much and thus eating into our profits.
Now we have to realize we are not going to make huge profits for next to nothing. We are going to have to do a bit more work and start to think outside the box when it comes to fixing up the house. Now we are relying totally on the sweat equity principle to make a profit. This means that it is only what you do to a house that will bump up the price and still make the buyer view it with favor.
We learned from SaltLakeHouseBuyer.com, when you buy a run-down property, you still need to make sure that it is structurally sound. It may look hideous; it may even smell disgusting, but that’s good news for you. That’s what will turn the other buyers off and give you a good price. And you are going in with the idea of fixing those problems.
Understand that Mr. and Mrs. Buyer don’t want to spend money on repairs in addition to their purchase price. They want a home that is ready to be lived in. Hey, it’s been enough hassle just moving; who wants any further problems renovating?
So when you purchase that home that no one else wants, think outside the box to find how you can renovate it to make it absolutely brilliant. Forget new carpets and paint and look at some structural alterations. That doesn’t necessarily mean tons of money.
Look at the layout. You may be able to add an ensuite to the master bedroom. That will jump your value up tremendously. Look for another area that can be used for a family bathroom. Try replacing a blank wall with picture windows. This could open up the home to a view that people may not have realized was there.
Look for original cladding. Restored to pristine condition, it may give the home value that was previously unthought of.
Another great move is to use garage space for an extra room – a family room or an extra bedroom perhaps. Install a carport to replace it, or if it’s a two-or-more car garage, use half for the extra room and keep the rest for the car.
You may be able to add a deck out the back, with sliding glass doors onto it from the house. Or maybe the house would have better curb appeal if you pulled down that filled-in front porch. These are the kinds of things to look at when you want to add lots of value to bump up your price.