An Essential Lesson From Today's REO Real Estate Market - Planning Repairs For Selling Rental Homes

When considering whether or not to make repairs tokitchen, baths, and maybe living area.
your home prior to sale, we can learn a valuableFixture Update - It is very easy and relatively
lesson from our local bank owned REO sales andinexpensive to install new fixtures in your home. This
trends. The banks quickly figured out that it is hard tocould mean new light fixtures in the entire house or just
sell dilapidated homes as buyers have a very hardreplacing the really dated ones. You can get some real
time seeing past damage that may only be cosmetic.bargains right now on fixtures from the big retailers.
When buyers can't visualize, they don't buy, resulting inYou don't need super high end unless your home is
slower sales cycles, lower prices, and more escrowhigh end. For example, we just found some stainless
issues. Some banks have started doing the repairstrimmed light fixtures for a lower end condo that cost
themselves as they've learned the hard way thatthe owner only thirty bucks! They're not fancy but
making some repairs may not be cheap but can savemake a world of difference compared to the old
them tens of thousands of dollars in discounts andcheap florescent lights.
negotiations.Any Major Eye Sore - Broken windows, green pools,
The question still remains, should you make repairs onholes in walls, dead landscaping. Having these problems
your rental house or just price it to sell? If you dotaken care before going on the market would be ideal.
repairs, exactly how much should you do to maximizeThese are the types of things that buyers, especially
profits? These are the things we will answer andfirst timers, are not familiar with. When they don't know,
hopefully give you a good gauge of just how muchthe imagination runs wild and fear sets in, even if not
repairs it makes sense to do given your currentwarranted. Not having any eyesores goes along way
budget.in ensuring confidence in the buyers mind.
Things You Should Do If Your Rental Home Has BeenHow To Avoid Over-Improving Your Rental House
NeglectedNot fixing enough is one thing, but fixing up the rental
Many people every year, especially after anhouse too much is an issue to be aware of as well.
unsuccessful sale, lease their houses out as rentalsUsually buyers say they'd like to purchase the least
and become a little emotionally detached from them. Ifexpensive home in the most expensive neighborhood
the time comes down the road when they would likethat they can afford, however, most quickly change
to sell, there really are some big bang for your bucktheir mind after viewing just a few of the "fixers."
repairs and improvements that one should make if theirStill, a house with too many improvements will usually
home has just been a little neglected. If your home fitsbe priced at the top of the local market, not the place
this description, here are some of the best and mostyou need to be right now. Think in terms of doing
common fixes, and coincidentally, the ones we arerepairs to a damaged home and applying the rules
most commonly seeing the banks making as well.above to get big value for each repair. Sometimes
Fresh Coat of Paint - This is often the biggest bangyou'll be spending a little more to give that semi-custom
for your buck. One thing that always makes the housefeeling (like a designer paint scheme); other times you'll
look new and improved is a fresh coat of paint. Thisbe shopping the clearance rack. Avoid the feeling that
applies to both interior and exterior paint depending onyou'll need to upgrade everything, unless again the
how bad it has gotten. Avoid wild colors but avoidproperty is high end, because most big improvements
boring apartment-like colors as well. If you need helpand projects just will not pencil out well.
with a palate, consult a design professional.Learning from Mistakes
Replacement Flooring - If a home has damagedWhen thinking about what repairs and improvements
flooring it really should be replaced. Carpet allowancesshould be made to your rental house, keep an open
are great in theory, but only practical when the existingmind to the fact that each house is different and
carpet is in good shape. Buyers have eyes that willmarket conditions fluctuate. Still, lessons learned from
naturally look down when touring a house and will havethe past should play an important role in our planning.
a hard time getting past the stained or damagedDespite the negativity surrounding our current
carpet they've been stepping on. As far as flooringinventories of REO bank owned homes, there are
choices, carpet is a staple and not a bad choice; wesome valuable lessons to be learned, among the most
have however seen an improved quality in laminatepertinent, how a little bit of work can pay big dividends
flooring and great pricing on ceramic tile. Most of ourwhen selling your rental home.
recommendations lean toward 18" ceramic tile in the