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I'm thinking of selling my 30 year old condo. It badly needs new carpeting, stove, interior painting. Some of the other owners have put trim around their doors, windows, even ceilings, and it really spruces their places up. A newly renovated condo in my building with the nice trim sold last month for $315K.
I'm thinking it might take $12K to put in new flooring, stove, and paint.
Is it a toss-up between knocking of 12 grand, and letting the new owners put in what they want, or spiff it up and list for the higher price? Is one choice fairly certain to generate a higher net return than the other?
It depends on what "needs" means - is stuff in decent and working condition but just old, or is it worn out, stains or bald spots in the carpet, nicks and dents on the walls, stove has only 3 working burners?
Also keep in mind that you aren't going to get 315K-12K= 303K if you sell a condo in poor condition. Flippers don't get back just the amount they put into a property, they make a profit over and above that, or they wouldn't do it. You are going to get the pre-flip price and the buyer who puts in the work will get the benefit of any increase in value.
It's not as easy as "knocking off 12 grand". You mentioned the fixed up ones are going for $315k but what are the non-renovated ones going for? My guess would be around $20-30k less than $315k
I'm thinking of selling my 30 year old condo.
It badly needs new carpeting, stove, interior painting.
Shampoo the carpet.
Wash the walls and windows.
Touch up the trim paint some as needed.
Install a very basic stove... scratch & dent or even a used one.
Shampoo the carpet.
Wash the walls and windows.
Touch up the trim paint some as needed.
Install a very basic stove... scratch & dent or even a used one.
All told... about $1000.
Then list it.
this
Oh, and buy some flowers for the patio, table, counter etc. $12
I'm thinking of selling my 30 year old condo. It badly needs new carpeting, stove, interior painting. Some of the other owners have put trim around their doors, windows, even ceilings, and it really spruces their places up. A newly renovated condo in my building with the nice trim sold last month for $315K.
I'm thinking it might take $12K to put in new flooring, stove, and paint.
Is it a toss-up between knocking of 12 grand, and letting the new owners put in what they want, or spiff it up and list for the higher price? Is one choice fairly certain to generate a higher net return than the other?
Spending $12K to make an extra $12K = zero, doesn't make sense or cents.
What a condo in your building sold does not mean yours will sell for the same price, yours is located in a different area that theirs, maybe even a different floor, one may be closer to the entrance or get more light, or closer to an elevator.
I wouldn't even spend $12K to potentially make $20K unless it's guaranteed and paid up front.
The buyers looking at the tired/original condos are an entirely different demographic than those buying fresh/clean/rehabbed units - or they're "setting" for an unrehabbed unit & they'll be looking to make you pay for the rehab + a discount for time & trouble. What costs a flipper $12k will likely require a $20-$30k "discount".
Take an honest look at unrehabbed/tired units that have actually sold & you'll see the discount likely exceeds the cost by a fairly large margin.
The buyers looking at the tired/original condos are an entirely different demographic than those buying fresh/clean/rehabbed units - or they're "setting" for an unrehabbed unit & they'll be looking to make you pay for the rehab + a discount for time & trouble. What costs a flipper $12k will likely require a $20-$30k "discount".
Take an honest look at unrehabbed/tired units that have actually sold & you'll see the discount likely exceeds the cost by a fairly large margin.
and what costs a flipper $12K would cost you $25K to hire a professional to do it.
and what costs a flipper $12K would cost you $25K to hire a professional to do it.
Not at all - flippers hire professionals to do repairs, they just don't hire the guys handing out brochures at Costco or the Depot (middlemen = cost). With a little careful shopping, you can do the same thing.
I'm thinking of selling my 30 year old condo. It badly needs new carpeting, stove, interior painting. Some of the other owners have put trim around their doors, windows, even ceilings, and it really spruces their places up. A newly renovated condo in my building with the nice trim sold last month for $315K.
I'm thinking it might take $12K to put in new flooring, stove, and paint.
Is it a toss-up between knocking of 12 grand, and letting the new owners put in what they want, or spiff it up and list for the higher price? Is one choice fairly certain to generate a higher net return than the other?
Based on info provided and the price range I lean towards the renovations you suggested. I don't agree with the "shampoo the carpet and go the cheap route" advice. Sophisticated buyers see right through cheap work and cut corners.
If it needs 12k worth of work buyers will want a 24k discount.
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