HOME RENOVATIONS FOR MOM
SPECIAL PROJECT FOR MOM
My mom and dad were always pretty conservative on their spending…okay, they were very frugal. While this characteristic served them well throughout life in many ways, it prevented them from updating their home in a manner that best resonates with today’s home buyers. The flooring, finishing and color choices of 1999 as well as hardware choices have changed. Because the home hasn’t been updated and there are also some worn areas throughout, its condition has left a pretty large gap in the “As Is” value and the potential updated value of my mom’s home.
For some homeowners, the only option is to sell to a home flipper/investor so it can be updated and then sold for a profit – for the record, there is nothing wrong with this and this is how many homes get the renovations needed to appeal to today’s buyers (and this also helps neighborhoods maintain or increase home values). However, the profit margin of the investor/flipper is what the homeowner is leaving on the table when selling in this condition. In some cases, selling to a flipper may be the best option because a quick sale is needed/desired. However, when the time, financial resources, expertise and desire are available, it may be possible to realize a much higher net sale amount when renovations can be done prior to the selling the home. This is what started our current journey…
Step 1 – Move Mom Into a Senior Community (resort-like and she loves it)
Step 2 – Remove important documents and family artifacts/pics etc. Also, remove all junk that isn’t saleable – call a junk removable company if needed – I can provide a referral.
Step 3 – Prep Home for Estate Sale – Steps 2 & 3 took approximately 200 man hours. (professionals can be hired to reduce this time for you)
Step 4 – Conduct Estate Sale (2-3 days) We did it ourselves but pros can often be hired.
Step 5 – Donate unsold items and/or continue to sell any valuable items that may be left.
Step 6 – Haul away any left over large items/trash – there always seems to be more than you think.
Step 7 – Begin Renovations – The Planning for this should certainly start earlier to gather estimates and schedule contractors. Creating an accurate budget is important. Depending on the scale, renovations can take 4 – 12 weeks or even longer.
Step 8 – Final preparations for selling the home for top price. There are many details to this step which will be detailed in a later issue.
Quick note: I gathered offers from investors – some small and one large company just to be able to illustrate the extent of the price gap. The offers were in the mid-300s for a home that we will likely list in the low-500s when renovations are complete.
Please contact me for more details and I would be honored to help!
Dale Samar – 602-799-7335