You Are Not The Customer: Style vs Cost Discussion

As a professional residential real estate investor/contractor, I see a lot of houses in various stages of completion or deterioration. One thing I am seeing more often is a completed flip sitting on the market for longer than expected periods. There are several potential reasons for this. However, there is one reason that can be less obvious to the new investor.

Personal style preferences not in sync with the neighborhood trends.

Each district has a local ‘feel.’ Sometimes this is cultural, other times it is enforced via HOA or covenants. This ‘feel’ can often dictate both interior and exterior style tastes. You need to know if those tastes are conventional, modern, traditional, exclusive, avant garde or eclectic. Some neighborhoods demand a similar style. Others allow (or even place high value) on wide variations in style. When flipping or building new in a neighborhood, too much emphasis on personal preferences can mean longer days on market (DOM) and cost.

New to an area? Before you even make the offer, take a good look at houses on the same street and a few streets on either side. Check out nearby homes for sale. How fast are they selling? What style was used to finish these out? Colors? Architecture? Features? Appliances? Your choices should reflect the local approach to style. Older homes alongside rather differently finished new homes in the area? There may be more opportunity for variation.

However, DO NOT make the mistake of assuming you have the eye for style (unless you have been told by others who have this gift that you do too). Instead, the help of a consultant can make a multi-thousand dollar difference in the outcome of your investment. The right consultant can guide you to the right finish materials and architectural styling at costs that preserve your ROI (if your procurement price is right).

Don’t know any style consultants? Check with local RE club and meet-up members (you should go to as many of these as you can find time – great for networking). As for referrals to qualified consultants. Your project will reward you for it!