Do Cheap Repairs Equal Big Profits in Real Estate Investment?

<p>The purchase of a new property is expensive enough on its own, even without additional fixer-upper costs. A new project can be intimidating. In order to maximize your profit margins, you’ll need to work smart.

<p>You may not be a skilled carpenter or plumber, but you can improve your re-sale chances with a few common tools and a bit of elbow grease.

<p>The very first thing a potential buyer will notice is the condition of surrounding houses. <p>Encourage your neighbors to clear away toys, cars, and other discouraging junk before your buyer arrives. For those neighbors to your immediate left and right, offer to mow their lawns as an incentive, or haul their trash to the dump. Some sellers will even offer neighbors a small cash reward for a successful sale.

<p>This may sound painstakingly cautious, but any shrewd buyer will surely notice the condition of the neighborhood. They have only a few minutes to gather their information, and you’ll want to be certain that their experience is a pleasant one.

<p>Next, force a critical eye on the condition of your property. Keep the lawn well-groomed, and repair any bare spots. Trim out-of-control bushes. It would also be wise to invest in a few dozen inexpensive plants and flowers, weather permitting. Make their lingering first impression a positive one.

<p>Spend a little time on inexpensive repairs. Fix the leaky sprinkler head, and replace the dripping bathroom faucet. Take care of these unsightly issues BEFORE showing the house. The more expensive repairs can wait, to be used as a bargaining chip later on.

<p>It might be too expensive to replace the carpets, but you can replace worn-out welcome mats and entrance rugs, and a carpet cleaning is relatively cheap. Repair small carpet damages, or cover them with furniture. You should be honest with potential buyers about these flaws, but this needn’t be the first thing they see. Remember: you’re trying to create a good first impression. Be sure to check the quality of wood beneath your carpet; you may discover a beautiful hardwood floor.

<p>Clean, repair or replace old, dirty screens to give the exterior a fresh new look. Replace cracked or broken windows, and clean them thoroughly. Cleanliness will go a long way toward increasing the value of your property.

<p>Air conditioning and heating repairs can be costly, especially if you have to replace defective or worn conduits. Try to patch isolated holes carefully with duct tape. And replace old filters, to give the air a cleaner, fresher smell.

<p>A bit of spackle and a fresh coat of paint is probably the most important, easiest (and cheapest) interior improvement you can make. A carefully painted room will open up, and brighten your chances of a sale.

<p>Buyers will notice your efforts, no matter how small or insignificant they seem. These small things will help encourage them to buy, and they’ll greatly increase your ability to bargain for a better selling price. A property that appears well-kept and maintained is much more likely to sell -- and at a higher price -- than one in obvious disrepair.

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