Dallas is currently a seller’s market. The majority of homes are being sold with multiple offers, and the price of homes has risen about 5% each year for the last three years. Clearly, now’s the time to sell property for profit in Dallas.
If you’re considering renovations to increase your profit potential, do so with caution. There are a few mistakes sellers make when renovating a Dallas investment property for sale that could cost you extra money and time. Here are three errors to avoid when putting your investment property on the market.
Over Renovating the Property
Don’t make improvements that aren’t necessary to sell your property, especially in the kitchen. If you over renovate you may not make your money back from the investment, so stick to the basics as much as possible. If you do decide that renovations are necessary, use the amenities of other houses in the area as a benchmark. For example, there’s no need to install real hardwood floors throughout a less inexpensive home.
Remember, renovations aren’t the only way to improve your property. A simple deep clean can boost your property’s value. Make your kitchen, carpets and bathrooms sparkle. An immaculately clean house that’s move-in ready is highly attractive to buyers, and it will cost you far less money than major upgrades.
Trying to Coordinate Renovation Remotely
In most cases, managing renovation projects from out-of-town is ineffective. Deadlines are missed and work quality suffers when there’s no one to hold contractors accountable each day. If your property is out-of-town, you should hire a management company to take care of the entire process for you.
A property manager can research contractors and present you with multiple bids to save you time. Plus, they can manage your contractors on site to ensure the job’s getting done to your satisfaction. Hiring management to oversee renovations while you’re away is worth the extra expense.
Hiring Contractors Who Aren’t Bonded Or Insured
All contractors you hire must be bonded and insured. Accidents happen, and if a non-insured contractor can’t pay for property damage or work-related injuries, the financial responsibility falls on you.
It’s not worth the risk. To protect yourself, require each of your contractors to show proof that they are bonded and insured before you sign off on a contract. Then, if anything should happen you can go directly to insurance to recoup costs.
So, what’s the secret to preparing your investment property for the Dallas market like a pro? Resist the urge to upgrade every detail, don’t be afraid to ask for help, and ensure your interests are protected when working with outside contractors.