If you haven’t noticed rehabbing is back…in a BIG way. What’s rehabbing? My definition is buying a house, repairing/updating/& finishing it to the maximum allowable by neighborhood standards in hopes to sell it for the highest realistic price. That’s a mouthful.
If you don’t already know, selling houses retail is a delicate balance between budget & final product. There are a lot of variables that play into your end profit.
1. Purchase Price
2. Rehab amount
3. Rehab time
4. Rehab quality
5. Rehab style
Let’s pretend that you have all of those already figured out. If you even paid attention to the title of this article, now that you’ve finally read it, today’s all about the special sauce. You know, it’s what make a Big Mac a Big Mac. It’s what keeps Coca-Cola the most recognized brand in the world, and it’s what make people literally freak out to have the newest Apple gadget.
Well a big part of the special sauce in my rehabs is…Lighting.
Not really, and here’s why..
Picture this, you are invited to a mini REIA get together at a current listed finished rehab of mine. As you drive up you notice a dozen or so cars and a few friendly faces in and around the yard. The curb appeal is there, nice accent colors on the house, clean and classy landscaping, even a high end address bar. You walk into a freshly custom painted front room with gleaming hard wood floors, an amazing fireplace, but wait a second…something’s just not right. You can’t exactly put your finger on it but you just feel like something’s a little off. As you enter the kitchen it’s almost like a gray overcast is looming above the cherry cabinets and miles of granite. Finally you take a trip downstairs to the basement and it hits you. The eerie feeling that a vampire may be lurking right around the corner. All of this negativity has been caused by one thing…lack of proper lighting.
The first thing I make sure of in all of the houses I am selling is that there are 100 watt light bulbs in every single outlet. That’s even true if I’m wholesaling a stinky old foreclosure. But even before the light bulbs you have to make important decisions regarding your fixture choices during your remodeling planning process. I always opt for fixtures that have 2 if not 3 bulbs for general lighting; bedrooms, hallways, closets, foyers, etc… In bathrooms I typically go for a fixture with 4 lights as opposed to 3 unless that bathroom is tiny. Remember the brighter and cleaner a house is the larger and more welcoming it becomes. Next when it comes to laying out recessed lighting in the kitchen, family room, or master bedroom I always put in more than the room “seems’ to need. As long as it doesn’t look weird with too many holes in the ceiling too close together of course. Last but certainly not least in the basement. How many basements have you walked into in the last 5 years that made you say “Wow, this place is so clean and bright”. Not very many I’d assume. Typically Ill have 2 switches at the bottom of the basement steps that turn on all of the lights. This way when potential buyers go down to what’s normally a dungeon they are more than pleasantly surprised.
A $2 pack of 100 watt light bulbs from Home Depot or Lowes can help you sell faster for more profit. That’s my goal with The REIA of Macomb: to help you make real money in real life in real estate investing.