I’m going to break down a property that we recently sold in Carlsbad for some wonderful clients of ours. They unfortunately inherited a dilapidated property from their parents. It definitely looked like it had not been tended to in the last 5-10 years, but it was located in a great neighborhood and built relatively recently around the early 2000’s.
What was needed from us?
When we went in to see the property, it looked very ‘lived-in’ and it clearly hadn’t been remodeled. It definitely needed carpeting and a paint job. Based on the comps and what we saw, we realized we could sell this house ‘as-is’ for around $900,000 which ended up being significantly less than the figure we eventually closed at!
We knew that a good remodeling could potentially push the value up into the $1 Million mark, so we used our funds and fronted the capital required to get the property market ready. We started by getting the place vacated and got all the furniture and fixtures out of there. We put in new carpeting throughout and in the process we found a slab crack in the bathroom which required new flooring as well. We brought in our window and tile cleaner and did a deep clean up. The total cost of all this added up to $16,375; a significant amount that we paid for on behalf of our client rather than have them looking for investors for the sale. Not to mention the fact that we handled the execution of the entire project from renovations to listing to sale.
Breaking down the figures
This entire process did take us around 2 months, during which time there was some appreciation in the market. It was prime summer selling season and this definitely helped us close on a higher figure. Once we had the place prepped up and market ready, we listed the property at just under $1.1 Million. We had a ton of people view the property over the weekend and ended up with 3 offers on the house. We got the buyers to compete with each other on price and finally closed at a whopping $1,120,000; a significant bump over the $900,000 we had originally pegged it at. The profits made on the sale were over $200,000. After deducting the investment made on renovations and the 4-5% appreciation rate at the time, you’d still end up with over $158,000.
There are investors out there trying to get properties at a discount so even if you lack the funds needed for renovation, know that we here at True Local have the solution for you. We make it very easy for you. Head over to our website – https://truelocalrealty.com/ and have a look at our hands-free selling solutions. We handle all the heavy lifting and ensure that you get the most amount of money out of the sale.
If you ever have any questions at all… please reach out to us!
- If you are thinking about buying or selling we would love to help!
- Visit us at TrueLocalRealty.com
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