Author Topic: Sell rental property as is or limited renovations?  (Read 2554 times)

Devils Advocate

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Sell rental property as is or limited renovations?
« on: October 26, 2013, 09:30:47 PM »
I am thinking of selling one of my rental properties. The house needs new carpet (stains and pet odor) and painted indoors. There are quite a few cosmetic problems.
The newly renovated flipped houses in this community seem to be selling for around 125,000.
I bought the house 7 years ago for 105,000.
Probably worth ~105k as is.
Thinking that if I put carpet and new flooring in and paint maybe worth 110k
How would you handle this? Talk to a local realtor and get their opinion?

DA

anniebelle

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Re: Sell rental property as is or limited renovations?
« Reply #1 on: October 26, 2013, 11:27:35 PM »
Personally, I'd renovate, for as little as you can get away with. People generally overestimate what it will cost to do up a place, and you may find you drop below $105k. Spend a few thousand making it presentable - it should then sell quicker, making your holding costs less.

Best advice I ever got in Real Estate was "shoot the dogs".

Good luck!

arebelspy

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Re: Sell rental property as is or limited renovations?
« Reply #2 on: October 27, 2013, 08:52:01 AM »
Pretty it up.  Spending the 3-5k to get a few thousand more in sales price is worth it, even at a slight net loss, due to the ability to make it sell faster, IMO.

Best advice I ever got in Real Estate was "shoot the dogs".

That is excellent!  Thanks for sharing.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
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Devils Advocate

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Re: Sell rental property as is or limited renovations?
« Reply #3 on: October 27, 2013, 10:31:55 AM »
That seems to be the consensus. Thanks guys.
DA

anniebelle

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Re: Sell rental property as is or limited renovations?
« Reply #4 on: October 27, 2013, 02:17:42 PM »


Best advice I ever got in Real Estate was "shoot the dogs".

That is excellent!  Thanks for sharing.

Believe me, I've still got one I have a bit of sympathy for but it's on life-support. The darn thing has cost me so much over the years I'm loath to sell it because I feel I'd lose even MORE money on it. Currently it returns me the princely sum of $40 per week. Woo-flipping-hoo.

Nords

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Re: Sell rental property as is or limited renovations?
« Reply #5 on: October 27, 2013, 07:55:20 PM »
Pretty it up.  Spending the 3-5k to get a few thousand more in sales price is worth it, even at a slight net loss, due to the ability to make it sell faster, IMO.
My spouse's years of watching HGTV have shown her that the vast majority of homebuyers just can't see the value in a fixer-upper.

If you have the house primped & staged, you'll sell it faster and closer to your asking price.  You spent more money getting it ready, but you don't have to wait weeks (or months) for the discerning DIY buyers who are always seeking a fixer-upper.

There's one exception to the above rule:  do you personally know someone who's always buying income properties?  They may appreciate being able to buy your place "as is" if they can save on realtor's fees, or they may have an acquaintance who's interested.  But if you can't think of a word-of-mouth network within five minutes, then it's better to primp & stage with a realtor.

Devils Advocate

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Re: Sell rental property as is or limited renovations?
« Reply #6 on: October 27, 2013, 08:40:46 PM »
I have an appointment with the REALTOR on Tuesday and the flooring to be measured on Wed.
Paint and a few other cosmetic repairs and will be ready for listing.
Thanks
DA

anniebelle

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Re: Sell rental property as is or limited renovations?
« Reply #7 on: October 29, 2013, 11:46:48 AM »
Brilliant! I'm sure you know all this anyway, but if you can, paint the walls and ceilings same colour as it saves "cutting in", or in my case leaving God-awful wavy lines along the edge between the wall and the ceiling. We use a standard colour called "Sea Fog" by Resene paints but not sure if you can get that over there (we're in New Zealand which is why you might notice I've spelt "colour" differently).

Anyway, a nice white is all you need. Flash cupboard door knobs that look expensive but aren't, a few colourful plants by the front door, a freshened up letterbox - SOLD :-)

Love to know how it goes.