Should I do the repairs or bite the bullet and perform the improvements? As a Property Management Company in Gwinnett County, Georgia, I battle this dilemma every time I make the decision to sale a home or place one on the market. With so much money on the line, I started looking for ways to take the emotion out of the decision.
The first thing I do is make a list of all of the homes that I consider my competition. I look at price, similarity, and proximity. Once I do this, I visit as many of the homes on my list as possible. I’m looking to see what the homes selling points and weaknesses may be. I’m also looking to see how many of the homes are foreclosures. Typically, a foreclosure has some deferred maintenance and will usually carry a lower price.
If there are more properties in foreclosure that have some maintenance needs and are close to what I can sell my home for, I will typically do just the repairs and cosmetic work. I like for my home to be nicer, cleaner, and easier to access at the same price point. That way, my home should sell first or rent first. If the homes on my list are nicer and in retail shape and are more than I have to sell mine for, I will also perform only the repairs and cosmetic work. I only perform the improvements when my must equal the competition. This can happen when the majority of the homes are in retail shape with few foreclosure to slant the comps and are typically over the median price range. In my area, homes are usually over $200,000. However, I must be able to recoup our investment. For every $5,000, we want to make $10,000 at closing.
For more information on selling or renting your home, visit us at www.4thavenuepropertymanagement.com. 4th Avenue Property Management is a Property Management Company in Gwinnett County, Georgia offering Property Management Services in Lawrenceville, Buford, Suwanee, Sugar Hill, and Dacula. We specialize in Rental Property Management.