Rehab that House

Published by julia | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Shout Outs, Uncategorized

With the availability of so many foreclosed upon houses with super low sale prices attached to them, it is tempting to try your hand at rehabbing.  But where do you start?  How do you begin?  How big of a project can you handle?  As you are shopping, you should be able to drop each house into one of two categories, Structural Rehab or Cosmetic Rehab.  Start by learning the difference between the two then decide which will work best for you.

When a house needs more than what is commonly called “TLC” or cosmetic work, it would be considered a structural rehab.  The conditions of a house that requires a structural rehab would be evidence of fire damage, cracks in the foundation, sagging floors, fire damage, water damage, or dry rot. These projects are not only difficult and potentially pricey to complete, but estimating the costs of the project is difficult.  It is very easy to underestimate the work and end up eating all your profit at sale time.  For these reasons it is best for the novice to avoid the structural rehab altogether and leave it to the experts.

Cosmetic rehab, although still potentially a lot of work, is much friendlier toward the average guy or first timer.  Conditions of a cosmetic rehab could include paint, carpet, holes in the wall, missing or shabby cabinetry, trim work, windows, door knobs, etc.  Major mechanical and plumbing work, although not cosmetic, could be included in this group because a simple estimate from a professional would decide whether or not it could be done on your budget while still turning a profit.
Once you have decided upon the house, the best part to start is the outside. Prune overgrown trees and shrubs, mow the lawn, and start some basic landscaping.  With watering and minimal care, the plants and beauty of the outside will continue to flourish once you have moved onto working the inside of the house.  This would be a good time to power wash or paint the outside of the house, as well.  You will have curb appeal in no time.
Once your focus has turned inside, remember that the goal is to turn a profit.  Don’t get carried away with unnecessary upgrades. A good job on carpet, paint, a few fixtures and landscape will go a long way to improving the appearance of the house.  Familiarize yourself with the features of neighboring houses so you can make the house appropriate to the neighborhood with the least expense.