Jersey City, NJ · Member since 2016 · 170 posts · 12 votes
Hi gys -
I find this nice property. Its got basic kitchen - simple appliances, wooden countertops, old style cabinets. but all looks clean, good, not damaged.
It comes to mind to upgrade all this to sell higher and quicker. But then I wonder - rather than putting in 10K and then asking for 10K higher - why not just ask 10K lower?
Anyone's got a similar dilemma? Experience? Advice?
Flipper/Rehabber · High Point, NC · Member since 2016 · 276 posts · 183 votes
10y
How about just relaxing and painting the cabinets, replacing the counter, and installing appliances from the local discount appliance store... That way you can save money and still get the "fully updated" look that will sell quickly.
Rental Property Investor · Radnor, PA · Member since 2015 · 178 posts · 125 votes
10y
Hi James,
I think the best plan is to do two different analysis. Instead of looking at just from the rehab costs perspective, analyze time on market for rehabbed vs non-rehabbed properties. Typically a fully rehabbed property will sell a lot faster than a non-rehabbed property. Then calculate the holding difference. Meaning if it costs you $50/day to hold the property, and there is a two month difference of time on market (based on previous sales in that area), you can expect to lose another $3,000 by not doing the upgraded kitchen. Also that is another two months before you can reinvest your money, so you are losing even more than the $3,000. Personally, I think there are three things that sell a house: Location, Kitchen and Baths. If you are at least going to get your money back from the investment, plus you decrease your time on market, I think it's worth it. (Especially considering what time of year we are approaching!) Good Luck!
I think the best plan is to do two different analysis. Instead of looking at just from the rehab costs perspective, analyze time on market for rehabbed vs non-rehabbed properties. Typically a fully rehabbed property will sell a lot faster than a non-rehabbed property. Then calculate the holding difference. Meaning if it costs you $50/day to hold the property, and there is a two month difference of time on market (based on previous sales in that area), you can expect to lose another $3,000 by not doing the upgraded kitchen. Also that is another two months before you can reinvest your money, so you are losing even more than the $3,000. Personally, I think there are three things that sell a house: Location, Kitchen and Baths. If you are at least going to get your money back from the investment, plus you decrease your time on market, I think it's worth it. (Especially considering what time of year we are approaching!) Good Luck!
Ashley
Great advice!! Thank you.
Personally, I think there are three things that sell a house: Location, Kitchen and Baths.
Even though i am working on my first flip - i could not agree more.
I am trying to find a repeatable & inexpensive way of renovating kitchens and bath.
I'll try to work with Home Depot at first to see if they can package a deal of works for me.
Numbers from independent contractors are all over the place.
Flipper/Rehabber · High Point, NC · Member since 2016 · 276 posts · 183 votes
10y
How about just relaxing and painting the cabinets, replacing the counter, and installing appliances from the local discount appliance store... That way you can save money and still get the "fully updated" look that will sell quickly.
How about just relaxing and painting the cabinets, replacing the counter, and installing appliances from the local discount appliance store... That way you can save money and still get the "fully updated" look that will sell quickly.
Yeah - minimal work for max bang also seems to work in some cases.
Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
10y
Most retail buyers cannot see past what is presented in front of them. That is why most stagers suggest home owners to put away personal items and pictures when selling their house.
If you do decided against upgrading the kitchen, maybe you can put on the mls a couple of options 1. Price as is. 2. For $10k more, you will upgrade the kitchen by doing certain things.