I have a little secret. It’s actually my FAVORITE house flipping secret.
So what is it? I spent $350 and added $18,000 to the sales price of a flip.
I know, I know…sounds too good to be true.
House Flipping Secret: How I Spent $350 To Add $18,000 To My Home’s List Price
When I bought Flip 2, it had an attached sunroom, but the sunroom wasn’t heated or cooled.
Before I get into why it’s significant that it wasn’t heated or cooled, we have to go back. I’ve mentioned this before, and I preach it every single day as a Realtor: To determine the list price of your house, you price is PER square foot.
Example: If the going price per square foot is $90/sq ft and your home is 2,000 sq. ft, then a reasonable list price is $180,000 (90 x 2,000= 180,000). Obviously the more square footage you have, the higher the list price. [Disclaimer: Yes, upgrades can enhance your list price but it starts by enhancing the price per square foot].
So, back to my sunroom at Flip 2. It was 240 square feet that was not heated or cooled. So why is the heated & cooled part important? Because if the room/space is NOT heated & cooled, you CAN’T include it in your square footage. So when I bought Flip 2, it was 2,044 square feet of heated & cooled space PLUS 240 square feet of unheated/non-cooled square footage.
Like I mentioned earlier, the higher the square footage, the higher the list price. Usually the only way to get more square footage is by adding on or enclosing a garage (I NEVER, EVER RECOMMEND ENCLOSING A GARAGE). But what if I said you could add square footage without adding on or enclosing a garage?
So how’d I do it? I hired a contractor to add duct work and vents into the sunroom. You only have to add one, but you can add more than that if you wish. He essentially “attaches” to the existing duct work in the attic that heats and cools the rest of the house and then routes the new duct work into the ceiling in the desired space, the sunroom in my case.
When I bought Flip 2, it was 2,044 square feet. When I sold it, I sold 2,284 square feet. The parts and labor to add the duct work was $350. At the time, our market’s average square foot price was $75. Since then, our market has been booming and prices have jumped, but, two years ago, I was working with $75 sq/ft. So for my $350 investment, I added $18,000 to my list price [75 x 240= 18,000].
When I marketed the home, I was now able to market a larger home with a sunroom that could be enjoyed through all 4 seasons. Prior to adding the duct work, that room was not usable in the winter and pretty unbearable in the peak of summer.
I had plans to do this same trick to Mac’s sunroom, but unfortunately, the replacement cost of the windows (since they were odd size) was astronomical. So even though I could have added substantially more to the list price, I would’ve spent all that and then some on the windows. So, instead, it’ll remain just a screened-in porch.