The first commandment of fix and flip success: Not all repairs are created equal. There are some repairs that homeowners might do because it improves their quality of life but those repairs have no bearing on the value of the home. Because repairs are expensive and can add up quickly in a fix and flip, you need to make sure you are only making repairs that add both quality of life and monetary value to your property.

So what repairs will get you the biggest bang for your repair buck? Here are the top 5:

1)    Repairs that are necessary for code violations and safety. These usually aren’t flashy or very fun to think about, but if the roof is leaking or there is mold growing in the walls in the basement you’ve got to fix those things first. Anything that needs to be in good working order for inspections should be fixed up first.

2)    Kitchens and bathrooms. These are the rooms that get used the most in a property and are the costliest for a prospective buyer to fix up. Remember, though, don’t go overboard. New, basic appliances in the kitchen and a coat of paint or varnish on the cabinets can go a long way. Don’t spring for the fancy tile if a laminate choice will work just as well. Not all countertops have to be granite.

3)    Curb appeal.  Drive up to your property and think about the first things you notice. First impressions are powerful and managing those is what curb appeal is all about. Repaint exterior trim and clean up landscaping. Plant flowers and mow the grass. Put a welcome mat out and some nice chairs. Whatever makes the property look more homey is what you need.

4)    New windows, siding/stucco, and decks. These are other areas that usually drive up the value of a home. Typically these are upgrades that are meant to last for years and buyers will appreciate that they don’t have to do it themselves. Remember, though, these are fixes that can get extremely costly very quickly so keep your budget in mind. New windows don’t have to be brand-name and while vinyl siding or sand finished stucco is nice it might be wiser to just replace damaged and worn out wood areas and repaint. 

Going over your renovation budget is the surest way to lose money on a fix and flip. Remember that you can set your asking price but you can’t control whether or not buyers will pay that. Be conscientious and conservative in your fixes in order to make the most money.

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