One of the biggest questions many who have real estate owned property have is how much they should do in terms of repair or upgrades in order to sell the home. Of course, when you have a property like this, you want to sell it fast and get it off the market as quickly as possible, but you also want to make a profit on the property.
This can present a problem, as merely owning the property costs money. All too often, when a lender forecloses on a property, the very prospect of the property sitting vacant costs money, and it can quickly become difficult to get any real return on investment. Discover a few REO renovations and repair projects that can deliver a significant return on investment to make you a profit from your foreclosure.
REO Renovations and Repair
A lot of the work you’ll do on your REO project comes down to basic maintenance. Not keeping up with the general maintenance on a vacant home can cost thousands or tens of thousands of dollars in fines from local municipalities. In addition, the more a property goes neglected, the more it will cost to make it livable again and, consequently, the less valuable it will be on the open market.
Basic Maintenance and Repair
This means that the largest return on investment you’ll likely get will be on basic, essential maintenance and repair: keeping up with the lawn, making sure the roof and structural integrity is solid, ensuring that the walls are painted inside and that the floors are in good shape. All of these things cost money but are the essentials of selling the home at a profit. Structural integrity matters, and that’s all there is to it.
Kitchen and Bathroom
If you’re looking to straight up increase the value of the home, the two most popular remodeling jobs, and those that every homebuyer looks to when they examine a home, are the kitchen and the bathroom. These will likely be the first projects you want to undertake. Expanding the space in the kitchen, upgrading it with modern counters and fixtures, an island and an open floor plan are great options that don’t have to cost a ton of money.
In the bathroom, upgrading the faucet, bathtub and toilet, adding some new light fixtures and potentially opening up the size of the room are all great options, which don’t have to cost a fortune but can add significant value to the home.
A finished basement isn’t one of the most popular upgrades, but it’s one that can be done inexpensively and can really add to a home’s usable space. Address any moisture issues, put up some walls and lay down some flooring and a solid ceiling, and you’ve got a whole extra floor on the house.
Work with Your REO Services Company
If you have the ability to work with a solid and reputable REO services company, they’ll be able to advise you on the best path to take to get the most out of your property, whether it’s a complete upgrade for open market sales or investor sales for a quick divestiture. If you’re in the market for help in this area, contact First Freedom Preservation for more information today!