Overcoming Deferred Maintenance: Prepping a Fixer for Sale

So, you want to sell your house, or maybe someone else’s house—an aging or deceased relative, for example. And, for whatever reason, the property has experienced “deferred maintenance.” It needs a lot of work!

Bringing a “fixer” home up to a sellable standard can seem overwhelming sometimes, especially when it needs significant improvements. Getting top dollar for a property that needs work can be challenging, especially if your budget for improvement is tight. That being said, with the right perspective, some creativity, and strategic emphasis on the right things, it can be done—for less time and money than you probably think.

Where to Get the Most Bang for Your Buck

Experts often say to put your energy into updating the kitchen and bathroom for maximum impact. However, a major renovation in these areas can set you back tens of thousands of dollars and take weeks to complete, which simply isn’t possible within a tight budget and time frame. So instead, make your focus on the areas of the home that will make a good first impression and enhance the overall look of the house—for a minimal outlay of cash. Here are my top five recommendations:

1. Get rid of the clutter. Buyers need to be able to visualize their own life in the house—impossible if there are piles of stuff everywhere! The clutter has to go. (If this feels overwhelming, hire a high school or college student who wants to make a few extra bucks to help you sort.) Have three categories of bags or boxes available as you move through the rooms: throw away, give away, put away (keep). The “keep” pile will be the minimal amount of stuff you either want to take with you to your next home if you are selling your own home, or perhaps mementoes or heirlooms you want to pass on to family members, etc. in the case of liquidating a home for a relative. “Give away” goes to Goodwill or other similar charity (often these organizations can arrange to pick up your stuff). And “throw away,” well, that just goes straight into the garbage or to the dump! (You may also have a “garage sale” pile as well.)

2. Give rooms a facelift. Repaint the interior walls in a neutral color. Replace carpets (opting for a low-cost but good-quality laminate floor is often a good choice). Paint and new flooring not only improve the look of the house, but also the smell, giving the impression of fresh, clean, and new.

3. Get rid of dated or dodgy furniture. Keep only the nicest furnishings (less is more). If you don’t have any, consider borrowing statement pieces from friends or neighbors temporarily to improve the look of the home for showing. Or pick up a few new inexpensive or free things on Craigslist or local give-away websites. If staging isn’t your forte, ask a friend with an eye for style to help you arrange the rooms attractively. Your real estate professional may be able to provide assistance with this.

4. Give every surface a deep clean. Include exterior surfaces and windows, interior walls, floors, trim, doors, bathrooms, tile, etc. If you don’t have the time or energy for cleaning, hire some help. It will be worth it!

5. Tidy the front and outside of the house. Weed and trim the gardens, prune hedges, and mow the lawn. This makes a tremendous improvement in the curb appeal, for little to no money. The changes that will make the biggest impact may actually cost nothing more than a few weekends of hard work! Tip: adding bark mulch is an affordable update that is especially effective, as it injects color and makes garden beds look neater. Also, clean the roof and gutters. (If the roof needs to be replaced, do it now. You don’t want the roof to be an area of distraction and it will likely be required anyway.)

 Keep Your Buyers’ Goals in Mind

Consider that potential buyers of a dated or fixer property will likely be planning on renovating themselves, and will have their own ideas on what changes they want to make. So you don’t have to do everything, especially things they will likely later undo. That’s why spending big on significant improvements can actually be counterproductive in these situations. Your job is to make the home and property liveable, neat, and tidy, so they can best see and appreciate its potential.

Your buyer can take it from there!

(c) 2018. Doug Lawrence Real Estate. All Rights Reserved.

Doug Lawrence is a licensed real estate broker with Keller Williams West Sound in Gig Harbor, Washington. Do you have a “fixer” you’ve been thinking of selling and are dreading getting it prepped? Give him a call, whether you’re around the corner or across the country.  He’s happy to help you get the process started and guide you all the way from sorting to SOLD! 

Is a Rehab Loan Right for You?

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If you’re a person who wants to get the house you want for the price you can afford—without getting into a bidding war for that move-in ready one—you might want to consider a rehab loan. Known in the industry as a 203K, this is a great option for getting a nearly custom home for a steal.

I recently worked with a young couple to buy their dream home, sort of. In that, I mean, it their dream home. But when they bought it, it wasn’t even close. Here’s how it worked:

  1. We found a house with good bones in a great location that just happened to be owned by HUD (Housing and Urban Development). We purchased the property at a good price, based on its condition. My clients had a fantastic vision for what this little rambler could be.
  2. That’s when the leg work started. We gathered bids for all the desired—and, in some instances, required—improvements.
  3. They applied for a loan for the purchase price plus the estimated repair budget, added on a little extra for anticipated cost overruns, and submitted the whole package to the bank for approval.
  4. When the approval was granted, the great news was that the final subject appraised value was going to instantly give my clients a boost of 10% equity once all the improvements were completed.

These were the kinds of repairs they made for this project:

  • new roof
  • new kitchen
  • new flooring throughout the house
  • removal of popcorn ceilings
  • paint throughout
  • new millwork
  • upgrading insulation in crawlspace

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Essentially, they will have a move-in ready, custom home, purchased for well within their budget, and with instant equity. What’s not to love about that? Although a 203K might not be for everyone, it’s a great way to end up with the house you want, for the price you want, if you’re willing to invest a little extra time and effort.

DOUG LAWRENCE is a licensed real estate broker with Keller Williams West Sound in Gig Harbor, Washington. If you are looking to buy, sell, or invest in real estate (203K’s or otherwise) in the Pierce or Kitsap County areas in Washington State, he’d be happy to lend a hand! You can find him at www.douglawrencerealestate.com.

An End to a Good Thing

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Greetings to both of my blog followers and to my wife as well.

You know when you know you should either do or say something and you don’t and the longer you wait the more awkward the whole thing becomes? Well, that is me and blogging. So, putting my awkwardness aside, here is my final update for my reluctant-landlord-turned-frenzied-flipper adventure.

I believe my last post ended with something about finding the right buyer. Well, we did. Twice. We finally got the house on the market on July 12th and were under contract by July 14th at near full price. Not bad, mission accomplished! With a projected close of mid-August, the frenzied flipper and clan were starting to dream, plan, and plot what the next chapter was going to look like.

But wait, not so fast…..

On August 23rd, after having already signed all the documents and having had a sneak peek at what our net proceeds might look like, we were informed that the transaction had just fallen apart due to buyer financing. So, here we go again! Instead of cashing a hard earned escrow check we were going back to writing them!!

Here is an abbreviation of what transpired next: Change of lenders (50% chance), 50% becomes 10%, buyer sends seller recision. Seller stalls, 10% just became 1%, divine intervention requested, divine intervention received! Extension given, buyers sign, deal closes, blessings given, keys handed over and much rejoicing…

It is actually hard to put into words what this last half year has been like. Scary, satisfying, rewarding, trying, consuming, and yet freeing at the same time. We endured nicks and bruises, disappointments and expenses. We enjoyed the fellowship, sense of accomplishment, jobs well done and the helping hands of neighbors, family and friends.

A chapter of our life is now closed.  A fine ending to a good thing.

No Cutting Corners

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No cutting corners.

Well, actually, just the opposite is true. For the last several days, I have cut MANY a corner (and angles, too) in my last big push to get this flip around the final turn and onto the home stretch. We are so close to market-ready, with only a few “bigger” jobs left to do.

Installing laminate floor in the kitchen is by far the largest task left to my immediate responsibility. Having already established that I am a second generation consummate do-it-yourselfer, have I also mentioned that there are other men out there who like to say, “It’s easy!” when it comes to doing a rather labor intensive task while they sit comfortably in an office somewhere else. Ah! There’s that word again–“easy.” They throw it to you like a life preserver. Supposedly all I have to do is just grab it.

Well, ninety minutes of  YouTube videos, a couple of boards cut too short, one cut backwards, a few nicked and dinged up corners, and the life ring comes into view. It’s finally starting to get easier, now that it’s almost done.

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So, here I sit, with 14 empty flooring boxes, five or so still to go, surrounded by bits and pieces and ends and scraps of laminate. I have convinced myself of the existence of my own personal “easy” button. Yeah, I am close to the end and feeling perhaps a bit smug because I have tackled and completed something new and it looks and feels pretty good. The only problem I have now is that three of my family members have remarked that the former family home turned rental turned flip  is “nicer now than when we lived here.” I guess that is a good thing.

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Art-Ful Endeavors

It is generally thought that “wisdom comes with age” and, being almost a half-century old myself, I would have to agree ( shameless plug). However, an alternative source is to gain it from experience or by doing. Kind of like the subfloor removal I shared with you in my previous post. After we (Grampa Art and Myself) got back at it for a second day in a row with our aching arms hanging listlessly at our sides, we straightened our otherwise crooked backs and summoned up all of our inner reserves to conquer our current frenzied flipper nemesis (i.e., nailed, stapled, and glued underlayment).

After an hour or so, or maybe six, Grampa Art summoned an idea from his own vast storehouse of wisdom reserves and suggested, ” I need a break. Let’s go to said box store and see what they have that can make this job go a little quicker” Now not being one who, generally speaking, likes to deviate mid-task, I was willing to make an exception and quickly responded with my best Sherlock Holmes, ” Capital Idea!”

the ripper

Enter the “RIPPER,” the most amazing labor-saving, back-relieving, underlayment tearing-up, vibrating, chisel-touting, staple-smashing, and glue-devouring machine I have ever laid eyes or hands on. Suffice it to say that with this newest recruit of modern floorfare fully engaged, our nemesis was quickly dispatched and summarily defeated.

I am grateful for the wisdom I have gained over the years through experience and attrition (age, I mean). But today, today I am most grateful for the wisdom of the man who was not afraid to momentarily withdraw and to seek out reinforcements. Without his help, guidance, and sweaty counsel, I might still be toiling with the floor of nails (among many other things) over the years. Thanks, Art.

Not as Good as I Once Was…

Do you, like me, see yourself as a much younger person than you actually are? I think this phenomenon is similer to the “your eyes are bigger than your stomach” syndrome my father used to remind me of years ago, but now with tasks and chores instead of food. As the consumate DIYer I have always taken pride in being able to “Do it yourself , save money, and finish with a strong sense of accomplishment.” and an in-your-face, contractor atttitude. Can I just say, whoa, those days are fading faster than I’d like.

Now, let’s talk about underlayment or “subfloor,” and you’ll see why I’m telling you all that.

This flip envolves a change of flooring in our rather large, sunny (sometimes) kitchen. In changing from boring vinyl to a more modern laminate click-style flooring it is important to remove the old vinyl flooring and the subfloor to which it is adhered. Please pay attention to the word adhered; we will use several apropriate synonyms later in this blog. This removal ensures that all of the flooring in the kitchen will be at the same height as the flooring in the adjoining rooms.

So, I, the consumate DIYer set out to remove the underlayment. The guy at the floor store, ( who is a friend and was generous to come all the way out to the house with a special saw to cut around the cabinets) said it should only take me a “couple of hours.” The contractor estimated two guys for four to six hours. Which one to believe? Was this a case of the optimist vs. pragmatist? So I watched a couple of Youtube videos, assembled my tools, and set to work with the can-do attitude of the consumate DIYer.

floor

The old vinyl came up easy, maybe too easy. I made my cuts and began to attempt to tear up the neatly cut 18-inch squares of subfloor. )The squares did not come up easily as they were stuck (or affixed, nailed, or connected) by some inexplicable means). What I mean is, they were glued, fastened, conjoined, and an invisble bond had formed. Getting the picture? It was stapled, cemented, superglued, adjoined forever by an unseen force. I had discovered the bonding of atoms; separation would result in certain disaster. Surely an impending doom awaited me….

It was after SEVERAL hours of back-breaking labor, sweating and grunting, that my epiphany came to me. I am not as young as I once was, the generous man at the floor store was a liar (not intentionally, I’m sure) and the contractor is a realist (read experienced). Turns out the floor was nailed, stapled, and glued.

I would like to meet the guy who installed that floor in the first place.

Gunk, Garbage, and Goo

grime-1So, I am back after a several day hiatus (from blogging, that is). The fact is we have been up early and out late pretty much every day since I last posted. We have made great progress, again, only because of scads of help. Neighbors, family, friends, and conscripted children have rallied to rid our former family home-turned-rental of the layers and layers of dirt and scuzz applied and deposited by its latest occupants. The most recent tallies account for over six cubic yards of rubbish and tenant leftovers  hauled away to the local landfill, and a large deposit of carpet and underlay waiting its turn for a one way trip to the dump.

I’ve included a couple of the pics to show you what we’re up against.

The kitchen appliances have been hauled away and the damaged trim removed. A thorough top-down cleaning hasgrime-2 begun as well as the various and sundry pre-painting prep work–all  in an effort to prepare the house for its date with its painting destiny.

That’s an overview of the inside, now for the outside…..

Suffice it to say that any gardening implement (both manual and internal combustion powered)  has been used in the combined 50+ man hours to return the yard to something resembling anything close to its pre-tenant state. Our crew has hacked, cut, weeded, whacked, sawed, and mowed. We have pulled and grunted and scratched, nicked and abraised and chainsawed and maybe even cussed in an effort to bring order to the overgrown chaos that was the yard.

There has been visible progress … but there is still much left to accomplish. We are grateful for Grandpa Art who has arrived to pitch in and stand guard.

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Day 4 – Many Hands Make Light Work

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So, Day 4 of our frenzied flip has come and gone and at least 40 man hours of yard clean up and maintenance were carried out in a quarter of that time.

We weeded, hoed, raked, mowed, trimmed, and chainsawed our way to a new level of self discovery. It can be overwhelming when you are standing looking up at such a huge task but the opposite is so true when, at the end of the day, you are able to gaze at such tangible results. It was a true testament to teamwork and camaraderie.

Only a couple of hours into our work day (Arlyn, kids, and myself), our former neighbors showed up with all the right tools, “Tim the Toolman Taylor” kind, and a can-do attitude. We  were a yard renovating force to be reckoned with!

We have attacked the yard first for a couple of reasons:  1) the weather is currently in our favor, 2) there is a short delay before the painting contractor can do what he does, and 3) it will provide a sense of accomplishment and inspiration as we pull into the driveway on the many days yet to come.

We ended the day with a bonfire and a semi-sentimental journey down memory lane. Tim rediscovered his first BB gun in the shed out back, Arlyn uncovered the kids’ small handprints set in paving stones under the weeping cherry tree, and the kids enjoyed the swing in the old oak tree once again. As night fell and the stars lit up the sky, we were serenaded by the frogs (or should I say inundated by the sound of the frogs) and I was reminded why we chose this spot to raise our family. Great memories!

swing

House Flip – Day One

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Well, Day One of our frenzied flip is over and what a day it was. I am sure you have heard the saying, “One man’s trash is another man’s treasure.”  It is safe to say I found no treasure but I sure found a lot of the first half of that saying and I mean a lot. The dumpster arrives tomorrow and Spanaway will be minus one small mountain.

I met with the painting contractor, chatted with a couple of our former neighbors (good people), and began the process of gathering up and removing the etc., etc., etc….

A special shout out to my middle daughter who made the trek out to the house to lend a hand today.

Tomorrow we meet the flooring contractor and will continue the clean up process.

Stay tuned!