Many people jump into flipping a house with great intentions, only to find themselves buried in renovation work. Often times, one project will lead to another costing you time and money.
If you are flipping a house for the first time, you should be aware of these 5 renovations to avoid.
Flipping a House in Edmonton
1. Don’t Get Personal
Many people buy a house intending to flip it, but they start redesigning it as if they were going to live there themselves. You don’t need to spend weeks deciding on the perfect carpets or paint colors. Avoid any expensive finishes or other high priced accents. The bathroom vanity doesn’t have to be perfect; it’s not for you. It simply has to be functional. Major cosmetic improvements are better left to the buyer who intends to actually live in the house. Most buyers will prefer choosing their own accents anyhow. All improvements should be done economically and in as short of a timeframe as possible. When it comes to flipping houses, time really is money!
2. Kitchen & Bath
We know… “the kitchen and bath sell the home.” Sometimes. However, people would rather pick out their own tiles than have someone do it for them. Fix things that are damaged, but don’t spend your money on an entire kitchen or bath renovation. Instead, spend your money on new lighting fixtures, drawer pulls, and faucets. There are many small changes and improvements you can make that will give the kitchen and bath a facelift, without breaking the bank. Having said all that, consult someone with experience on whether it might be necessary and beneficial to do a complete renovation in these high impact areas in the home.
3. Leave The Basement Unfinished
The expense of finishing a basement will have an adverse effect on your ARV. (After Repair Value.) You will not see a return on your investment that will ever make finishing it cost-effective in a flip. Leave an unfinished basement as is. The new homeowner can choose how they would like to use the space. Many will appreciate being able to set up and design the area to meet their needs. Some people will use it as a family gathering area, where others will use it as an office or gym. No matter how it is used, properly finishing the walls, floors and ceilings can be a daunting and expensive undertaking!
4. Never Add a Pool or Spa
Adding a pool or a spa to a house you are flipping is similar to throwing money away! This is another renovation that you should leave to the discretion of your buyer. The costs can be great, without any significant return on the final sale price. While you might think a pool would look great in the backyard, keep in mind, we’re in Edmonton, Alberta! And besides that….this isn’t really your house, and the money can be MUCH better spent!
5. Keep Landscaping Simple
Simple touches you can do yourself will have a huge impact. In many cases, simply pulling a few weeds and trimming back hedges and trees will dramatically change the appearance of an over-grown property. You can give your property instant curb appeal simply by adding a few flowers and cleaning up the front door and mailbox. Do not invest money in professional landscaping or design. This is another project better left to the next buyer.
During any house flip, it is important to set a budget and stick to it. Most construction projects will ultimately exceed your timeframe or budget. If you plan ahead for this, you can be assured you won’t be completely thrown off track by a small bump in the road.