If needed, catch up on things by finding my original post about the house flip HERE.
Sorry, I kinda drank all the champagne already.
Seriously though, for a rural house which had proved impossible to sell prior to our flip we achieved a great result. It was certainly bubbles-worthy.
We received several offers (the first of which came on the very same day it was listed!) and, after just three weeks, we accepted one for $340,000.
Although it was slightly below listing price, it amply covered all our costs. My mum didn’t even attempt to negotiate!
The fact is, this flip was never about making money. We simply needed a sale! Having sat on the market for years prior with absolutely no interest, gran’s sudden move into an aged care facility gave a new sense of urgency to things. Our main objective in refreshing the property was merely to find a buyer. Any profit was always going to be little more than a lovely bonus. All we wanted was a respectable enough price to cover gran’s aged care costs along with a relatively quick sale (in order to combat the compounding interest fees associated with the nursing home).
Luckily, we got both – and more!
To summarise the financial side of things, we received two appraisals prior to our refresh. One was $260,000 and the other was $280,000 (conditioning we made the property more presentable). In the interest of clarity, let’s create a mean and say the property was originally valued at $270,000.
We spent a total of $20,000 on the flip – $7,000 on the interior, $13,000 on the exterior ($10,000 of which went on replacing a large unsafe deck). This $20,000 covers absolutely EVERYTHING, including all furnishings.
So, this takes the standing total to $290,000.
In all honesty, this was the kind of figure we were expecting from the new appraisal. Remember, we weren’t trying to make a profit, just incite a quick sale.
Imagine our surprise when the agent quoted $359,000! That’s an increase of $69,000!
I have little doubt that given the luxury of more time we would easily have achieved this figure. That said, having accepted $340,000 we still far exceeded our expectations with a technical profit of $50,000!
Such an amazing result for gran.
As already mentioned, this refresh was never about revenue however it does show what is possible. And for someone who has always loved the idea of renovating for profit, it’s actually pretty exciting!
Thanks so, so much to everyone who offered their good luck and well wishes. Seems it worked!
Find my original post about the house flip HERE.