Potential homebuyers may not make it past the unlit foyer, no matter how attractive it is. If buyers can’t SEE it, they can’t love it. Even worse, they can fear the unseen (and quite possibly insignificant) qualities in a dark house, and become uneasy in a home that may be just perfect for them.
Lighting can be a relatively inexpensive but effective way to highlight the positive qualities of your home or downplay areas that are less attractive.
The most desirable and inexpensive lighting is natural sunlight. The easiest way to capitalize on this natural resource is to show your home during the daytime when the sun is shining brightly, throwing open blinds or shades, decluttering windowsills, and washing panes to allow light inside. This is also a good time to move Aunt Gerties’s antique walnut wardrobe away from the window. To do its job, light needs to enter a room unhindered.
Unless your window overlooks a neighbor’s collection of rusting cars or a grimy, graffiti-ridden wall of the building next door, it’s good to keep curtains open when showing your home. It makes the room look bigger and more inviting. If the view is less than attractive, hang sheer curtains over the window that will allow some light in while subtly distracting the buyer’s attention from the unsightly scene.
If the house is dark with few or very narrow windows, take heart. A trip to your local home improvement store can lighten things up quickly. Even naturally lit houses can benefit from the addition of appropriate electric lighting.
Begin by slowly walking through your house, taking special care to flip all switches and look at each light fixture and lamp. Are there burnt-out bulbs that need to be replaced? Keep a list of all the size bulbs you need to purchase.
Do shades or domes have dead insects or dust in them? Clean them and see how much brighter the room looks. Are there scratches, dents, dings or tarnish on fixtures? If they can’t be buffed or cleaned, consider replacing them.
If fixtures need to be replaced, consider your target buyer and the style of your house when choosing the replacements. For example, if the architecture and furnishings of your home are traditional, modern-style fixtures of polished gunmetal would look inappropriate. Or if you’re targeting younger buyers, the original circa 1970 pea green mod-style hanging lamp may need to go.
Lighting can minimize a room’s idiosyncrasies, creating optical illusions that make a room seem wider, a ceiling higher or hallway longer. Long, narrow hallways, common in today’s condominiums, can be transformed from wasted space to an art gallery with the addition of track lighting to illuminate artistic treasures. Is there a room that feels like the ceiling and floor are gradually closing in on you? By avoiding hanging fixtures and using those that throw light up a wall, such as floor can lights, one can make ceilings feel higher.
But if your ceiling has cracks or other blemishes, light that flows down to the floor moves the eye in that direction, distracting a potential buyer’s attention away from a negative feature. On the other hand, bowing walls of older houses require lighting that moves straight from floor to ceiling without hitting the wall. Here, the lamps or fixtures must be placed away from the wall and face the ceiling.
Often one can take fixtures already used in the house and move them to more appropriate areas. Life’s little horrors, real or imaginary, tend to disappear when rooms are lit properly.
Have a particularly small room? A mirrored wall will look double the size that it did when it was only painted. If the mirrored wall is across from a window, the natural light will be reflected and the room will seem brighter.
It’s important to remember that it isn’t enough to just have the proper light fixtures. You need to use them. Even during the day, lights should be on in every room of the house, including hallways, closets, bathrooms, on the stove, in the oven and under hanging cabinets. At night, be prepared for an evening buyer drive-by with lamps illuminated in rooms with windows that face the street.
If you are thinking of selling, email HomeLandInvestment@gmail.com or call me at 888-621-4999 for a free in-home evaluation of your house and what you can do now to get it ready for sale.
Happy Investing!
Showing posts with label fix and flip. Show all posts
Showing posts with label fix and flip. Show all posts
Wednesday, May 20, 2015
Tuesday, May 5, 2015
Buying Distressed Property
What to look for in a
home:
Let's say you are getting ready to make an offer on a home that you will fix up and re-sell as an investment. You can learn to think like a home inspector looking
at specific critical areas in a home using a property inspection summary
sheet. This is what I use when I go out
looking at homes to purchase. This way I
am always consistent and don't overlook anything obvious.
Potential re-sale matters a great deal at the
time of purchase. I look at the
neighborhood; Are the neighbors junky, is the neighborhood a war zone, is it on
a busy street, what are the values of similar properties in the area? As an investor I want to be able to get the
property, do the necessary renovations, then put it back on the market for re-sale.
Homes in disrepair are easy to identify from the curb -
usually they need painting, roofs need repair/replacing, junk in the yard,
gutters not connected, etc. These homes are great candidates for adding value by making repairs.
Well-maintained homes are just as easy to
spot, they look cared for and you will be able to tell that the owners take
pride in where they live. Some investors like to find homes that need minimal work, and they add value in other ways, such as adding rooms or subdividing the lot.
Positives and Negatives
Ways to catalog the pros and cons of the
home from an investor's perspective:
·
develop
and use a checklist of needed repairs for all the rooms
·
Identify
the pros and cons in each room (be specific)
·
Note
any functional/physical obsolesence
· Use an individual
checklist for each property.
To develop an accurate after-repair value (ARV) for the house, look for remodel comparisons in the neighborhood. Be sure your ARV allows room for profit after you pay for the house and all repairs. Key features for basing home comparison are
(compare apples to apples):
·
Location
·
Views
·
Design/Style
·
Quality
of Construction
·
Actual
Age
·
Condition
·
Lot
square footage
·
Gross
living area square footage
·
Number
of Bedrooms and Baths
·
Heating/Cooling
System
·
Energy
Efficient Items
·
Basement
(finished or unfinished)
·
Fireplace
Happy Investing!
With thanks to Bernita McKinnion, Home Land Seattle, for her assistance on this blog post.
Friday, March 27, 2015
New Home? or This Old House?
New Home PROS
·
Contemporary style
·
Some flexibility on design during
construction phase
·
Cheaper to maintain (new appliances = fewer
repairs)
·
Cheaper to operate (energy-efficient
construction)
·
Extended warranties
·
Cohesive neighborhood (consistent layout,
common areas)
·
Frequently have a homeowners association
(helps protect resale value)
·
It's brand-new!
New Home CONS
·
Cookie-cutter design
·
Limited negotiating room on price
·
Potential for homeowners association dues
·
Frequently less character, or homogenous
design
·
Frequently have a homeowners association (can
put limits on how you use your property)
Older Home/Re-Sale Home Pros
· Availability: More choices, more styles to choose
from
· Price may be more negotiable
· Track record: Known issues will be revealed in
disclosure documents
· Established neighborhood
· Could contain more charm and character
Older Home/Re-Sale Home Cons
· More maintenance: Things break or wear out
· Less energy-efficient: More costly to operate
· Dated design, older appliances and amenities
· It's been lived in!
So whatever your preference, old or new, be sure to consider the way you like to live. If the house is for you, buy what you like. If you are a builder or an investor doing a fix-up, be sure to consider the aspects of your construction that most appeal to a potential buyer.
Want to see the latest in new construction in Seattle? Email me at HomeLandInvestment@gmail.com for a complete list with photos of newly-constructed and green-built homes in Seattle.
Happy Investing!
This blog post courtesy of Bernita McKinnion, Home Land Investment Properties.
Friday, January 2, 2015
90-Day Rule for Flips
The FHA has had a rule for some time that at least 90 days of ownership are required until a homeowner may re-sell his residential property. That waiver of that rule expires today. It may be renewed, but until it is, investors who are flipping properties should be aware of the requirements.
They are as follows:
Happy New Year!
Happy Investing!
They are as follows:
4155.2 4.7.e Restriction on ReSales Occurring 90 Days or Less After Acquisition
If a property is re-sold 90 days or fewer following the date of acquisition by the seller, the property is not eligible for a mortgage insured by FHA.
FHA defines the
- seller's date of acquisition as the date of settlement on the seller's purchase of that property, and
- resale date as the date of execution of the sales contract by a buyer intending to finance the property with an FHA-insured loan.
4155.2 4.7.h Exceptions to the 90-day Restriction
The only exceptions to the 90-day resale restriction described in HUD 4155.2 4.7.e are for
- properties acquired by an employer or relocation agency in connection with the relocation of an employee
- resales by HUD under its Real Estate Owned (REO) program
- sales by other United States Government agencies of single family properties pursuant to programs operated by these agencies
- sales of properties by nonprofits approved to purchase HUD-owned single family properties at a discount with resale restrictions
- sales of properties that are acquired by the seller by inheritance
- sales of properties by state and federally-chartered financial institutions and government sponsored enterprises
- sales of properties by local and state government agencies, and
- sales of properties within Presidentially Declared Disaster Areas.
Happy New Year!
Happy Investing!
Subscribe to:
Posts (Atom)
