TV shows make Paradise rehab projects look quick and easy, but as anyone who has ever really done one, they are not so black and white. There’s a lot that can change or go wrong as the Paradise rehab project gets going, and you need to think about what you’re getting into.
If you’re considering a Paradise rehab for your home or rental property, here are four mistakes amateurs make (and you should avoid).
Making Assumptions Before Purchase
So you found this great house in a great location that needs a bit of a fix up. Looks like a fantastic deal, right? Maybe, but just because you’re getting a fixer upper, don’t assume you’re getting a fair deal. You still need to look at comps for the Paradise neighborhood and judge whether or not the seller is overpricing the home.
Have an inspector go through the home and make a list of all the needed repairs. Then take those repairs to a contractor and get an estimate as to how much all the repairs will cost. Make sure you factor in these costs during the negotiations. It’ll stop you from overpaying on a money pit.
Setting a Bad Budget
Even after you have an estimation from a contractor, you still need to set up a full budget for your Paradise rehab project, and it shouldn’t be whatever the estimation is. The truth is, Paradise rehab projects go off the rails quite often. The contractor might break a pipe, something could delay the rehab or the contractor might find something worse in the home, like asbestos. You need to be prepared for any unexpected costs, so always overestimate your Paradise rehab budget.
Hiring a Bad Contractor or Going DIY
Never hire a contractor that you haven’t checked out the reviews for. Some contractors try to cut corners and over inflate their prices. Others won’t file for permits so the work they do is technically illegal. You don’t want to work with these contractors. You’ll end up paying more to redo the work. Hire a reputable contractor the first time.
Unless you are a contractor, don’t make your Paradise rehab project a DIY. Buyers will be able to tell when something about your home feels off, and if you don’t file the correct permits for your work, your buyer will find out when doing their due diligence. If you aren’t an expert, don’t try and pretend like you are. Bite the bullet and hire a good contractor who will do good work.
Inflating Your Price
Just because you rehabbed the home doesn’t mean it’s worth more because you personally did work on it. A lot of rehabbers take the price personally, and they see it as a reflection of themselves.
Buying a home is a business transaction. Your buyers want a good price, and they don’t care how much work you put into your home. They just want it to look nice. If you want to sell your property, price it fairly.