What to Fix in a Fixer-Upper
Many real estate investors want to know what to fix in a “fixer-upper” to maximize investment returns upon sale. First of all, for a fixer-upper, never pay more than 50% of the market value for a good quality home of the same size located in the same area. No matter what the listing price is, use this as a guideline for making an offer.
After buying the property, the idea is to get the repairs done and upgrade the home without overspending. All the home systems need to function, otherwise the house will not pass inspection, but there is no need to buy the pricey stuff. Buy cheaper things if possible.
A few things are important, which are:
Curb Appeal
If the house looks terrible from the street view; few good buyers will go to the trouble to come into the house. Get rid of any debris and put trashcans out of sight.
Dead yards can be replaced with new sod or colored rock. Blooming flowers in pots that are strategically placed catch the eye. Driveways, walkways, and any exterior paneling needs to be washed with a power-sprayer.
A new exterior paint job is usually necessary. If so, choose neutral tones that appeal to most people and in two or three colors, no more. One main color for the home, one for the trim, and one for any highlights. Repair, repaint, re-stain, or replace the front door to make the entrance look appealing.
All windows need to be washed, so that they sparkle.
Kitchen
The kitchen is one of the main attractions in a home. If it looks dated, try re-facing the cabinets by either refinishing the cabinet doors or replacing them. Change out the cabinet hardware with nice hardware that has an appealing contemporary look.
New appliances are very appealing. Do not buy the most expensive ones, but do buy those with a stainless steel finish. Sometimes it is possible to use stainless steel covers that are glued to the front of old appliances, such as the door to a dishwasher. Just make sure the finished look is nice and does not look fake.
Bathrooms
After the kitchen, the bathrooms are the next most important place. They need to be immaculately cleaned. Tubs can be refinished if they are in bad repair. Buy a new shower curtain if the bathroom uses one. Consider replacing bulky old-style vanities with a pedestal-style sink. This makes a bathroom look bigger. A new toilet is a good idea if the old one is in bad condition.
Paint
Compared to other things, paint is relativity inexpensive. When painting the interior of a home stay with neutral colors, but do not use only white. Try off-white, beige, or very light grey.
Carpet
Replace the carpet if it is old and/or if there are pet odors. Otherwise, steam-clean it. The carpet need not be expensive to be impressive. It just needs to be new or look new. Again, stay with neutral colors. Light grey is a good choice.
Floors
Repair and refinish any wood flooring. Change the old linoleum for new.
Interior Doors
Re-finish or replace interior doors. Use matching hardware on all the doors inside the house.
Backyards
Make sure the backyard looks neat and use the same techniques as the front yard to improve the look.
What Not to Do
Do not make any improvements that are unnecessary. Do not put in things like swimming pools, a Jacuzzi, a fire pit, or anything that some people may not like. Stay neutral in the upgrade choices. Make the home bright, airy, and functional. That, and being in a decent area, increases the chances of selling it for a good price.