There are so many elements that go into a flip budget. Usually, there are enough old and outdated things that need to be changed which doesn’t leave much room for extras. But every once in a while you need to make an exception especially when it comes to exterior decisions.
When the siding is in good condition but the color is a “no go”, we need to go to Plan B. If the siding is vinyl, that means we are replacing it since it cannot be painted. Especially if we are listing at a price where a buyer would not appreciate the siding “as is.”
When you make exterior decisions, three important elements you want to pay attention to are:
When it comes to cost, these three definitely top the list. That is why if you are going to be listing your flip at the higher end of the comparable sales, you need to make sure these big-ticket items are taken care of. If you leave them, the buyers will likely ask for a discount or for the item to be replaced. Or even worse, the buyers won’t offer on the home because they get nervous that such a big item was overlooked. It creates doubt about the quality of the other items in the house.
So what are the rules when you have to make decisions on exteriors?
There are two types of shingles. A single tab or an architectural. The single tab has a shorter duration than an architectural. If a shingle has 50% duration left, we will leave it. In order to assess that before we decide we do a visual inspection to make sure. That way we can address it if an inspector or buyer comments or asks.
There are so many old houses with old windows. We have made a good practice of replacing all the windows in all of our flips unless they are newer. This can also depend upon your climate. In a cold climate, buyers definitely appreciate new, energy-efficient windows.
There are a few different types of siding, or exterior materials, you will come across. One is vinyl siding, which cannot be painted. Any other type of sidings like wood or metal can be painted. The difference in painting versus installing new siding is about double.
So, a typical replacement cost for these items during an entire renovation is around $30,000.00. By completing these items, you are able to offer buyers a home where these larger ticket items are already checked off the list.
Want to buy a property and renovate it?
I have a freebie checklist that will help you — 8 Things I look for When Purchasing a Home. Just click here to download it.
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