David G. Brown - HOW TO REDUCE YOUR RISK IN REAL ESTATE INVESTING

Prospective home buyers won’t necessarily view the expensive solar system painted on the ceiling in the dining room as a benefit, and some might even want to have it removed at your expense for them to even consider buying. It’s not easy to strike a balance between what makes you happy and what will make the buyer happy, because ultimately, it’s very subjective. What you like and what the potential buyers like will differ, but you can do your best to avoid over-personalizing to help make the sale. After all, every buyer needs a place to call home, because we all know, there’s no place like it.

DON'T OVERDO IT: KEEPING YOUR MARKET AREA IN MIND T AREA IN MIND

How much should you plan on upgrading during your fixer- upper? That depends on what you’re trying to accomplish. You can, after all, spend anywhere from a few hundred dollars to tens of thousands on the very same room. It seems intuitive that you would upgrade as much as your budget allows and make your home into the jewel of the neighborhood. However, caution is in order here. While you will no doubt enjoy knowing that you have transformed your humble ranch into an HGTV-ready show home, such a move could backfire in a big way when you put your flip on the market. Look down your street. Observe the condition of the homes and yards in your neighborhood. Are they well maintained or a little run-down? What about the inside of the homes that you’ve been in? Are the interiors tastefully decorated and contemporary, or do they reflect the fashions of generations past, sporting an array of burnt orange countertops, olive green appliances, and paisley wallpaper? Whatever the case, that should be your measuring stick.

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