This may sound like a stupid question, but i never quite understood why people spent so much money to fix a house right before they sell it? What main things do people do to it to increase it's value and how much do they make off of it? It always confuses me...
2007-02-20 10:56:01 · 10 answers · asked by Andii 3 in Business & Finance ➔ Renting & Real Estate
It is not a stupid question. But the reason is that most repairs on a home are worth double or more the price that they cost in terms of value. If a paint job costs 6,000 it will probably drop the price of the home by 12,000, if it needs to be done. So do it and make the profit your self if you have the time.
2007-02-20 11:04:38 · answer #1 · answered by hebb 6 · 0⤊ 0⤋
A primary reason for fixing it up is to give it more appeal to those looking to buy. Nobody wants to even look at a rundown, shabby house, let alone buy it unless they are planning to flip it. Then they will be making a lowball offer which is not good for the seller.
Some improvements are to increase value. Kitchens and bathrooms are the two areas that will increase the value of the offers than the amount that you spend to improve them.
2007-02-20 11:03:57 · answer #2 · answered by Brian G 6 · 0⤊ 0⤋
Often, a little bit of rennovation can increase the value of the house by more than the rennovation cost. The bottom line is if you can increase the house value by more than it will cost you, it is worthwhile to do that project. Many people do this for a living -- so-called flipping of houses. Usually, the best return for the dollar comes from rennovations to the kitchen and bathrooms. Also, landscaping and windows can be cheap ways to increase a houses value.
2007-02-20 11:01:04 · answer #3 · answered by Katt_in_the_Hat 6 · 1⤊ 0⤋
Bringing a house to date will increase the value of the home. Usually kitchens and bathrooms will return the cost to the home owner by 90 to 100%. So renovating these two rooms will allow for a higher asking price.
http://www.ontariocontractors.com/roi.htm
http://www.handycanadian.com/articles_contractors_biglar_kinyan3.asp
2007-02-20 11:01:14 · answer #4 · answered by SCORPIO 7 · 0⤊ 0⤋
we are speaking about some hundred money the following. restore the tile, era. some customers pick to usher in or purchase their own residing house equipment, that could no longer one of those huge deal. yet when the transaction is to comprise the variety, divulge that the oven does no longer warmth, a lot a lot less complicated to do at the front end than to have a ticked off supplier about 4 hours once they take possession. those 2 measly issues are not to any extent further worth going the as is route.
2016-12-04 10:41:36 · answer #5 · answered by ? 4 · 0⤊ 0⤋
It will increase value and expand the number of possible buyers - some buyers want a house that is ready and will not buy unless certain work is completed (they don't want a fixer upper).
2007-02-20 11:03:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Kinda like washing a car before you sell it. If it "looks" well kept, then someone will trust the seller a bit more.
Also...Some home "fix ups" are more "fixes" to bring it up to code to make the sale legal.
2007-02-20 11:05:28 · answer #7 · answered by Anonymous · 0⤊ 0⤋
you'd be suprised at how cosmetic things that don't cost a lot make people think they're getting something special. a little paint can go a long ways.
2007-02-20 11:27:17 · answer #8 · answered by chris j 7 · 0⤊ 0⤋
No your right it is a stupid question!
2007-02-20 11:46:20 · answer #9 · answered by Anonymous · 0⤊ 1⤋
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2007-02-20 11:04:05 · answer #10 · answered by Anonymous · 0⤊ 1⤋