1. What is the actual sale price they will get AFTER all the repairs are made? (As Repaired Value - ARV)
2. Take 80% of that (to leave a profit).
3. Deduct the cost of repairs.
4. Deduct the cost of holding the home while repairs are being made - including insurance, taxes, utilities, security, HOA fees,
5. Deduct eventual selling costs.
What is remaining is what they will offer you for your home as a fixer-upper. If you can afford the repairs, START with the ARV and determine if it is worth the hassle. IF you do the repairs right, and bring the home up to better condition than 2/3 of the neighbors (but not over-improved for the neighborhood), then you get to keep that 20% profit for yourself.
Here is a link to the best book available on the subject: http://www.kellerink.com/products/flip-how-find-fix-and-sell
Doc Stephens, REALTOR
Please feel free to call me if you have any questions.
Loretta Leibert, Realtor, GRI
Prudential Landis Homesale Services
Fine Homes International Specialist
Office: 610-372-3200 ext. 3049
I do this all the time for people and would be happy to help you out. Give me a call at: 717-858-2075 or email me at: AnnaDomzalski@kw.com
It really depends on a number of factors. If you were my client, weâ€™d look at the market for homes â€œas isâ€ and updated. Weâ€™d analyze the cost of doing basic updates, the time it would take, your available resources to accomplish the work and your timing. Based on all the information weâ€™d map out a plan.
If the real market return would be less than the cost of updates, and you had the time and resources, it would make sense to do them. If it looked like a break even or money loser, it would be obvious to just get the house on the market and hope the right buyer comes along. If you donâ€™t do the updates, it critical to prepare your marketing to the right audience. A buyer looking for a move-in ready home is not your target. Cosmetic fixer, build instant equity, make your own choices for color & finishes are some suggestions.
Get back to me with your schedule so we can meet and discuss this further at the property.
3333 Street Rd
Greenwood Sq #1, Suite 235
Bensalem Pa 19020
Every situation is different. Sometimes it makes sense to do the repairs/upgrades, and sometimes it doesn't. We actually specialize in this type of situation. I work very closely with a Contractor who does renovations for my clients and for my own properties. I start by doing a very detailed written analysis of your home which will include the "as-Is" value, fully renovated value, and if applicable, the market value with just some of the renovations done. The report will also include the cost of the renovations and we can even help you with financing the work.
I have had clients who befitted greatly from doing renovations prior to going on the market, but there are situations where you will not get the money back out of the home. I would be happy to give you a free evaluation to see which way is best for you. Feel free to call, text, or email me anytime
Keller Williams Real Estate
(215) 757-6100 Ext 175
(215) 813-6828 Preferred
Any experienced agent should be able to give you a good idea of what a "sale in current condition" versus a sale after improvements would net you. That would let you be in control of how much you want / need to do in repairs and upgrades (if any), and give you a good idea of where you stand..
In many cases, upgrades like kitchen , bath etc do add value - no question about it. Repairs of damage / worn out systems etc are not considered "upgrades", however something like new roof and other systems do add value (and are expected by most buyers).
What I like to do is: Sit down with a potential clients and go over values of similar homes in both "categories" - both updated and not updated / as/is , needing work etc. That way my client can decide which route to take. (In fact, I'm working with a client right now about a mile from Bensalem in the exact same situation).
I've done work in / and am familiar with Bensalem and I'd be glad to help.
Brian Luce ABR, SRS
(or use the trulia contact button to contact me anytime).