“If this were my house, how would I remodel it?” I want you to ask yourself this the next time you think about using floor tile for your kitchen backsplash. Come on people! You are literally spending money to drive the price of your property down! I’m not telling you to spend a fortune on your remodels, just be more mindful when picking out your materials and how they are installed.
Buyers in this market want well designed, new constructions or rebuilds. Flips have a bad name because there are so many people out there remodeling distressed properties without a design in mind or attention to detail. Your goal is to make more money right? So you should spend less rehabbing right? Wrong! Spend until the house is a finished product. I’ve seen a $550k house sell for $150k over market value because they were done so well. Here’s a great example:
North Dallas Flip #3 – Hillcrest @ Spring Valley
Bought for $380k – $140k Rehab – Sold for $700k
Notice the front doors. These doors are very popular with Dallas buyers right now. Probably the best $2k you’ll spend. Also notice the masonry, new windows, and high-end light fixtures. Landscaping could have been better, but this house obviously didn’t need it as it was on the market only for one day.
This home was opened up and made look even larger with hardwoods flowing throughout. This investor installed nail down hardwoods with a smooth finish in a medium walnut color. This is my goto flooring choice when I remodel and I see the highest returns from it. Totally worth $9/sqft.
High-end cabinets, high-end appliances, recessed lighting, and a wine fridge make this kitchen pop.
This stone wall with a TV cutout is the real win here. This is not cheap to do, but it’s become a feature that a buyer fell in love with, so it was worth every penny.
Exquisite use of space to create the ultimate shower and bath experience. You hardly see this in $2M+ homes, let alone a $700k home. So the next time you’re looking to add some serious value to your flip, try bringing in some features you may typically find in a house twice the cost of your flip. I’ve seen people add wine fridges to the kitchen, turn a closet in the living room into a wine closet with glass door, and transforming the master bath into a spa-like retreat.
When buying your next flip/hold project, remember that large master baths and expansive walk in closets in the master are what sell houses for top dollar. Doesn’t have one? Well before you buy the house, make sure you can bump out exterior walls to make the room needed. This not only adds features buyers are demanding, it’s also adding square footage that will ultimately drive up your sales price.
Here are the before pictures:
Some tips to leave you with:
Before you start your next remodel, consider what the final product will look like and bring in designer if you have to.
Don’t dismiss higher priced homes. Their profit margins are significantly higher, they don’t take you much more time, and when done right, they will sell just as quickly as a $250k house.
For those looking to hold their properties, renters are harder to please than buyers, so it’s imperative that the house is remodeled well. I typically rent out my properties for 20% higher than the market average. Remember, when you’re the only one with a beautiful move-in-ready product, you dictate the price.