We’ve talked before about having a great plan before you jump into any real estate transaction—and part of that plan is knowing the true costs of rehabbing a house.
Unfortunately, some real estate investors misjudge their investments and end up skimping on the finishing touches on a house… but in most cases, it’s those finishing touches that “seal the deal” with buyers.
Cheap Finishes Can Kill Your Sale
The bottom line is that skimping on finishes is a mistake. When you misjudge your budget or you decide to cut corners by choosing cheap finishes, you’re setting yourself up for failure.
Fixtures and finishes are a big deal to buyers, and they can make the entire house look more modern, livable and attractive—and they want quality. If you decide to wrap up your flip by installing cheap finishes, your house is going to be that much tougher to sell (and that’s an REI’s nightmare).
What Sells When it Comes to Finishes?
It’s always a good idea to gather inspiration for finishes before you jump in and make an investment (and this is definitely one area where a little investment can go a long way). Check out Houzz and HGTV to see what’s trending—usually, you can duplicate what you see for less. That way, you’re making buyers happy and saving on your budget at the same time.
Finishes aren’t the only things that sell a home, though.
“Use lighting to highlight special features—pendant lights to show off that kitchen island or sconces to illuminate a foyer. Under-cabinet lighting in the kitchen is affordable and makes countertops sparkle, says Bill Millholland executive vice president of Case Design & Remodeling in an interview with Melissa Dittmann Tracey for RealtorMag. “Fluorescent light strips tend to be more affordable and easier to install than puck lights.”
Your goal is to fix and flip the house as quickly and as cost-effectively as possible, but make sure you’re not skimping on the finishes in order to come in under budget. It could end up costing you a sale—and then nobody wins.