Flipping A Foreclosure? These Renovations Will Add The Most Value.

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Flipping A Foreclosure? These Renovations Will Add The Most Value.

When you want to flip a foreclosure, you need to consider what renovations the home will need in order to turn a profit. The more money needed for renovations, the less of a profit you make. By upgrading key elements of the foreclosure property, you can improve the appeal of the home to buyers without going over budget on your project. Your renovation budget will likely be determined by the amount you purchase the foreclosure for as well as the market value of the foreclosure when you are ready to sell. Any renovations will help to increase the value of the foreclosure, but certain renovations are more likely to attract buyers and add value to the home.

Foreclosure Renovations

Upgrade The Kitchen

The kitchen is the heart of the home and making renovations to this room can make a huge difference in the desirability of the home. The state of the kitchen and appliances will greatly determine the number of renovations you may need to do. For example, if the cabinets are old, hard to open, uneven, or have other problems, they may need to be replaced, but otherwise, they may only need a new coat of paint. Adding conveniences such as a dishwasher can also make a huge difference. If you want to upgrade the countertops so they are up-to-date, unscratched, and easy to clean, consider synthetic stone instead of marble or granite. These options are more affordable but still offer a great look and easy maintainability. Upgrading the door, cabinet, and drawer hardware is another easy and affordable way to make the kitchen look well cared for and current.

Fix The Bathroom
Some bathrooms can benefit from major renovations, but others just need some new fixtures. If there aren’t many bathrooms in the home or you are renovating the primary bathroom, you may want to consider more extensive renovations such as adding double sinks or replacing the linoleum. But if the main bathroom already has decent sinks and flooring or has enough space, focus on smaller renovations. Replacing the faucet, drawer handles, and bathtub faucet/shower head with sleek, contemporary fixtures to make the whole bathroom appear up-to-date, cared for, and clean.

Paint
This is one of the easiest upgrades but it can make a world of difference to your foreclosure property. A new coat of paint will cover up any scuffs, tiny nail holes, and other small imperfections in the walls. A new paint colour can also help to brighten up the house or set the tone. When you are painting a foreclosure to sell, remember that most people like neutral colours. Even if they may want to repaint once they own the property, neutral colours help people to visualize the space as their own and can help them see the possibilities for the home.

Update Lighting
Updating the lighting fixtures can help refresh the home and brighten the place up. If the current lighting fixtures are fairly current already, or if you don’t want to spend the budget on replacing all the fixtures, you should at least make sure that all the lights are working and that the lighting colour enhances the home. Consider switching any incandescent bulbs to LED bulbs, as LED bulbs produce a brighter, whiter light that looks more natural, whereas incandescent lights tend to produce more yellow light. Changing your lighting is an easy way to make the home appear brighter and more welcoming, and adding a few lamps when staging the home for a showing can help to brighten up every room to make the home more appealing.

Increase Curb Appeal
Whether they are viewing the home on a property listing site or as they drive by, an interested buyer will first see the foreclosure property from the outside. Increase curb appeal by ensuring that the front yard is full of groomed grass. A front yard full of dead grass, bare dirt, or weeds will immediately make the foreclosure look like it’s not cared for. You may also want to perform some landscaping and add trees for shade and privacy, or potted plants by the front door to give a welcoming feel. Make sure the front door is also in good shape; there should be no peeling paint, discoloured door frames, creaking hinges, or loose handles. You may need to replace the door fully, but sometimes a good sanding, coat of paint, and new handle/lock are enough.

To learn more about flipping a foreclosure, read 4 Tips to Flip a Foreclosed Home on a Budget.

 

Buy And Sell A Calgary Foreclosure

When you want to buy a foreclosure to flip, you need to consider what renovations will be needed. Although some renovations can help to increase the value of the foreclosure before you resell it, you will need to consider the value of the foreclosure when you first buy it as well as any major, non-aesthetic renovations the home may need. To find a foreclosure with good potential for profit consult with a Calgary Realtor® who is highly experienced with foreclosure sales. With over 40 years of Calgary real estate success and thousands of foreclosure transactions, the Mel Star team can help you find the right foreclosure and navigate both the purchase and sale of the foreclosure before and after renovations. Find the right foreclosure project at a great price by contacting the Mel Star team at 1-403-861-9944 or filling out the online contact form.

FAQ

Navigating the Calgary real estate market can be difficult, especially if you aren’t aware of all of your options or when it’s a seller's market. A good Realtor® should do the following for you when investing:

  • Know the value of the homes you look at
  • Advise you about different investment opportunities
  • Comb through MLS listings and open houses
  • Represent you well in possible multiple offer scenarios
  • Keep a calm head during negotiations
  • Diligently navigate contracts and closing
  • Connect you with other professionals as needed

A foreclosure property is a bank-owned home that is for sale. The previous owner was unable to meet their mortgage payments, therefore the bank repossessed the home and is selling it to recuperate the money still owed against the mortgage. To learn more about foreclosures and how to earn a profit from them, read Do Calgary Real Estate Investors Need To Hire a Foreclosure Specialist?

The bank wishes to sell the property as fast as they can to recuperate the lost money from the missed mortgage payments by the previous homeowner. This is often why foreclosure properties are listed for low prices to attract buyers.

CONTACT US

We are here to help and we'd love to hear from you. Call us at 1-403-861-9944 and we will be in touch shortly!

 

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