You may have seen those shows on TV that follow real estate investors who fix and flip a house. It looks like great money (and it can be) and it looks so easy (but it’s not). What they don’t often include is how much it can cost to get a house ready to put on the market.
If you have a home that is out of date, you may think it would be easy to remodel it to sell. Maybe your parents passed away and left you the family home, or you’re moving out of state. Before you start a major project, you should be aware of the realities.
The Cost of Rehabbing
Rehabbing a house isn’t as easy as you would think. It takes a lot of work, but it also requires a lot of capital. Here is a breakdown of some of the most common costs associated with a rehab in California. This chart shows the low and high end of cost, depending on how much you want to put into the property.
|Costs of Remodeling In CA
|$5 per sq. ft
|$8 per sq.ft
|$3 per sq. ft
|$6 per sq. ft
|$1 per sq. ft
|$3 per sq. ft
|Roof replacement for 1500 sq. ft. house
|Labor for installing new windows
|$50 a piece
|$75 a piece
If the whole house needs work, you could end up spending close to $100K just to get it ready to sell. No matter what estimates you get for the work, always have an extra 10 – 20 percent for unexpected expenses.
Other Challenges with a Rehab
Post-Covid has changed a lot of things, including how quickly you can get supplies. Materials can take from 4 to 20 weeks to arrive once you place an order. That entire time, you must pay the utilities, mortgage if you have one, and any other expenses necessary. If you have outdated plumbing or electrical, you could end up with more costs and a longer timeline for those to be brought up to code.
If you want to sell your California home and avoid these headaches, contact Quick Home Offers to get a fair cash offer.