To help our investors uncover what is really adding value to a neighborhood, we will take all the sold properties within the past year. We will then dive into each feature and take the average price per square foot for each, showing things like granite vs. formica countertops.

Using this strategy, we can tell what upgrades and features are actually bringing more value for sold properties, and has proven to be an essential tool to our investors.

What kind of tools do you use and how does it help you?

We actually have a group of appraisers that provides some of these GENERAL guidelines...

They have a sheet that shows much of the same info that you have...essentially, what provides return on investment. For a long time this has been the data locked into investors heads that really is the "experience" factor in investing.

Having these rules of thumb to guide you takes you a LONG way towards making solid design decisions...

Eric

This is an excellent strategy Steve. Most of this is typically done based on intuition and experience. While both are valuable - a past experience with something good or bad will sometimes lead you to the wrong conclusions and sometimes intuition is off base as well. Reliable data is a much stronger predictor of future success IMO.

For me there is only two things that are a cost effective improvement - paint and cleanliness. They will return more than 100% of cost.

There are really 3 things that sell a house - bathrooms and kitchens and storage space. Remember, in the final analysis it is women who you sell to. I`d do the best I could to make these areas appealing without sinking in a lot of cash. Better to give a discount or cash incentive so the buyer can redo these areas to their liking.

I`ve seen rehabbers put in all kinds of cash into a property, then sell it, and guess what. The new buyers rip out all the rehabbers work and put in what they want. Why not just eliminate this waste of time and effort. Most of the other add-ons are liabilities because it restricts who your target buyer is.

It`s no use putting granite in a $40,000 home. Are you nuts! Selling a $400K home-probably has it anyway.

Sounds like maybe you are getting caught up in paralysis of analysis.

Find out from your investors what they are looking for, then find it for them. Sell fixer-uppers to rehabbers. Sell pretty homes to retail buyers.

Need leads and deals today - contact me.

Cheers,

Joseph
realestseller@yahoo.com