How to Rehab a Property for Quick Sale

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By Wasatch, eHow Member

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Rehab a Property for Quick Sale

Rehabbing a house for resale can be very profitable. It can also be a money pit if you over spend on improvement or are not able to market the home before holding costs eat the profit. After 2 decades here is my advice.

Difficulty: Moderate

Instructions

Step 1

First and foremost if you want to buy and sell single family homes you need to buy right. Profit is made when you purchase the right property with a margin of profit that is comfortable. Be fair in buying but never overpay. A rule of thumb is buy at 80% of retail for a similar home minus expected fix up costs.
Step 2

Do the basics. Clean the property or have it cleaned professionally. The expense for return is great even if you plan to wholesale it before major work. If you are not replacing carpet have it cleaned. Buy area rugs for rooms where it makes a difference. Don't forget to clean the front yard and remove anything unsightly. $25.00 of flowers in the front bed may sell a home better than reroofing. Buyers decide quickly on first impression and emotion if a home will work or not.
Step 3

If you plan fix up and remodeling focus on the kitchen. Modern lighting and a few thousand dollars of new appliances make all the difference to the lady who will use them. Home buyers are usually buying as high as they can afford. The wife knows if the house has a 20 year old refrigerator she may have to live with it for a year or 2. All new and nice is a big emotional plus to a home buyer. It does not need to be the top of the line, just new and matching the stove and fridge speak to buyers. Stage for a showing with some nice decor you can take with you when the home sells is a good idea also.