Should I Renovate Before Putting My Property on the Market?
If you have a property that is not a brand new property, or hasn't been recently renovated, then you have some options. Every house 3 values:
1) Fully Renovated Price: This is the maximum price that the property will sell for and appeal to the greatest amount of buyers. We can show you how much you can expect to get for the property if you have the time (usually 9 to 12 month) to renovate it. A typical example is if you have a home that is worth $2,000,000 AS-IS and you spend $300,000 to renovate it, then you can usually get an extra $300,000 to $400,000 extra and sell it for $2,600,000 to $2,700,000 or even more.
2) Partially Renovated Price: This is a middle of the road number, where if you wont have the budget or time to do a full renovation, then Roman can show you where to spend $30,000 to $40,000 and perhaps get $100,000 to $120,000 in return on your money, just by making the property appeal to more buyers and if the home is older, how to make it qualify for financing in order to increase the number of financed buyers.
3) AS-IS Price: This is the lowest price that will appeal to the least amount of buyers. if the house needs $300,000 to $400,000 in renovations, then the following buyers will not be able to buy it
- those that need to sell first in order to buy and move in at the same time
- those that don't have an extra $300k available
- those that don't have the time to deal with it
- those that don't want the time to wait, and need to move in now
- those that won't qualify with the bank to carry two mortgages
So you are left with cash buyers, or investors who will want a much larger return than if you renovate it yourself like in #1 above.
Roman Pavlik is an expert renovator, and operated a real estate fund in South Florida that acquired, rehabbed, leased and managed over 5000 homes. Roman can come to your house, give you the advice, refer you to quality contractors, help with the budget, and find the best way to get you top dollar for your home in the timeframe you need.