Posted by ken in sc on April 10, 2011 at 15:54:58:
I paid 90K for this house and spent 14K on the rehab. The extra’s I did here were granite and stainless in the kitchen. In this neighborhood of approx 10 yr old houses most were built with formica counters and builder grade white appliances. I also added a 2nd deck. I replaced all hardware including hinges, knobs, platecovers, and also all light fixtures. Most of the houses used the gold color back then but I made the switch to brushed nickle.
This house sold 4 years ago for 180K. I think a good case could have been made that it was worth 160-165K now. But I listed for the 154,900 to get 'er done.
if you list it right they will come - Posted by ken in sc
Posted by ken in sc on April 09, 2011 at 20:11:13:
Listed a renovated house Tue for 154,900, maybe 5 or 10K below current value. Had 8 showings and two contracts by Saturday. Took the all cash at 150K, close in 2 weeks. Hard to argue with the cash.
It just goes to show that even in today’s market you can sell houses. Renovate them nice, list them right, add a little staging, and they sell. My last 3 rehabs were 3, 4, and 5 days on the market. Maybe I am leaving a little on the table, but I am happy to do that if I make a nice profit and get my money back to do it again.
Bottom line - whip the competitions A$$ and get paid. Make it a no brainer that you have the best house at the best price. One buyer in that neigborhood is all you need. You dont need the whole market to get better, just one little ol’ buyer. The market is bad yet I have competing contracts. wanting my house. Overwhelming value is the key. We went the extra mile on the rehab and listed it below the others. A nice price going in made this possible.
Thanks for the insights! I just closed on 2 rehab houses in SC last Friday and can’t wait to get going on them. Up to now I’ve been a buy and hold investor, but I see the opportunities in flips like you describe, so I’m going to try my hand at it. I appreciate the recipe for success.
Re: if you list it right they will come - Posted by Kristine-CA
Posted by Kristine-CA on April 10, 2011 at 11:01:18:
“Overwhelming value”…there’s a phrase you don’t hear much these days. Congrats on getting that prop sold quickly and profitably! Would you
mind sharing what you think were the most important “extra mile” items
on the rehab. Thanks, Kristine
I wonder if you could mention what you think the market value was when you bought it, and then what you originally paid for the property. Also, what did you spend on the rehab, maybe a couple of the fixes that made your property stand out from others on the market.
Nice work Ken. All you say is indeed true, however you must first purchase the home RIGHT and do not over improve/over spend.
In my farm the retail buyers continue to way Overpay for properties. This makes my job of purchasing wholesale very challenging.
Lets get out there and make it happen!!!
Congrats on getting that prop sold quickly and profitably! Would you