Hi Bigger Pockets Family,
I am new to bigger pockets and about to make an offer on my first deal. It is a 4 bedroom colonial with an asking price of 199,000, based on the comps in the area, I can potentially sell it for 310 t0 320. Renovation cost will be around 60,000. I live in the northeast and with the cold winters heating can be expensive, unfortunately, the house that I plan to flip has electric heating, I am wondering if it's worth the investment to change the heating system from electric to oil or gas. Will electric heating system drastically effect offers, my realtor says potential not, but I what do you think?
@Mona Arthur I'm over in VT, and IMO yes, it will affect offers. I definitely wouldn't buy a house with electric heat unless I was rehabbing it. If you're going to renovate it, do it right.
Get lots of estimates but $10k-20k would be a rough range. Also check out incentives in your city / state as there will prob be rebates available.
Welcome to BP!
Spending 10K on a new heating system will not increase the value of the property by 10K so all you are going to accomplish is to spend part of your profits.
That may be nice for the buyer but does nothing for you. Take your realtors advice.
I would recommend to try and only get local advice on this one. I've sold real estate in different parts of the country and local preference can vary greatly on this subject.
Thanks @Tom S. I plan on rehabbing and will get estimates asap.
@Mona Arthur I am a Realtor and would suggest that you add a supplemental heat unit (Monitor heater, gas or propane fireplace, pellet stove) this way you can advertise more than one type of heat without replacing the entire heating system.
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