Jun 27, 2013

How much should you spend on your Dallas home remodel?

Lots of smart investors are buying properties in Dallas now before prices and mortgage rates rise further. And the savvy folks know that in order to make money on your property when you sell, you need to buy it at the right price and put the correct amount into it. I just bought a townhome this week that I'm remodeling.

Having successfully bought, remodeled and sold 7 homes, I can share a few tips with you on what to consider when buying a home in Dallas to remodel. First consider buying the ugliest home on the street. Then when you improve it, it will be in keeping with the neighborhood. The location will determine how much you should put into home improvements.

Think of it this way. You can't take a Honda, spruce it up, and call it a Lexus. It's still a Honda. It might be the most luxurious Honda around and you can sell it for more than the average Honda or a banged up, older version. But it will never be a Lexus.
Likewise, the neighborhood you buy in will determine the maximum price you can get for your property. If you buy in a 'honda' neighborhood, don't expect to sell at a 'lexus' price. Only improve the property to the high end of the neighborhood. Let's say you buy in a neighborhood where prices are $300,000 to $500,000 and range between $140 and $170 a square foot. It wouldn't be wise to buy at $165 a square foot, put $40 a square foot into remodeling the property, and expect to sell it at a profit any time soon.
A good, experienced Realtor can help you determine and purchase a property at a price that makes sense if you are buying for an investment. [where: 75230]

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