How to Fix Up a Run-Down Property for Resale

Real-estate investors are always looking for the best way to make the most money from their properties. Fixing up and reselling a run-down property can be a profitable venture - if you know what you’re doing. Here are some tips to make the most money from your renovation project and get the best value for your investment.

Research the Market

The key to successful renovation projects is researching the market before starting any work. Find out what potential buyers are looking for and get an idea of the neighborhood housing prices. Learn about any laws and regulations that might affect your renovation project and make sure you account for these in your budget.

Budgeting

Creating the right budget is essential to success with a run-down property renovation. Begin with a realistic estimate of how much the repairs and renovations will cost. Consider ordering a professional inspection to help you get an idea of any hidden costs that you might not have seen immediately. Factor in the cost of building permits, materials, and labor. Then compare the budget to the estimated resale fraction and adjust accordingly.

Hiring Help

Choosing the right team of experts is key for a successful run-down property renovation. Start by getting referrals from trusted contacts and interview potential contractors. Do a background check and ask for a portfolio of completed projects. Don’t forget to also account for the fee these professionals charge for their services.

Prioritize Projects

Depending on the size of your project, prioritize which repairs and renovations make the most sense for your budget and timeline. Generally, high-profile features like kitchen and bathroom renovations are a smart way to add value to a property. But that doesn’t mean you should neglect smaller projects, like fresh paint or quick repairs. These can often be done in house and still add the right character and charm to a space.

Stage the Property

The goal of any renovation is to make the property attractive to buyers and maximize the return on investment. Staging helps buyers imagine their lives in a space. Consult with an interior designer to help you make the most of the space and create a home-like atmosphere.

No matter the size of your project, a successful renovation requires planning, budgeting, and knowledge. Following the tips above can help you make sure your next property renovation is a success. Good luck!