I sat with a seller who had completed fixing up an old house near Gawler Belt. When they bought the place, the house was ugly. Old carpets. The yard was overgrown. Most buyers walked in and turned around. They saw money. But these sellers saw opportunity. that houses in this area has good bones. Under the ugly, was a beautiful home. So they bought it at a low entry point. And they got to work.
It is tough work. Unlike The Block. It is dust. It is late nights. Costs go up. But when done right, it is a proven method to manufacture equity in the market. You force the value up. You don't hope. You create the growth. This example is proof the potential in the gawler real estate market.
I advised them through the process. I didn't build, with market knowledge. "Skip that room," I advised. "Spend money here," was my tip. Knowing where to spend is the key to profit. Spending foolishly means you lose. It is vital to know what buyers want locally. That is my value.
The Ugly Duckling On The Street
The property was sad. It smelled of old cigarettes. It had an old stove. The tiles were retro. It was the worst house on the best street. The classic rule: buy the worst house in the best location. The street appeal pulls the price up. You can paint walls; you can't move land.
The purchase price was low. A renovated home in the same street were worth mid $600s. The spread was huge. It took cash. A lot of work. Structural cracks. More than paint. They did due diligence. The bones were good. So they proceeded.
The average buyer wants easy. They want finished. They pay extra to avoid renovation. If you have skills to fix it, you earn that premium. You are paid for the inconvenience. That is the business. Renovate and sell.
Planning The Renovation Budget
The limit was sixty thousand. That is not a lot for a full renovation. They had to DIY. They gutted it on weekends. That saved $5,000. They did the painting on their own. Trades cost money. Sweat equity keeps cash in pocket.
Cash went on key rooms. The money rooms. Updated the kitchen looking modern. It seemed luxe but was cheap. Fixed the shower using modern grey tiles. They polished the floorboards. Under the old carpet were hardwood boards. Refinishing transformed the house.
They didn't move walls. Engineering is pricey. Stayed within the walls. This is smart flipping. Visual changes make the most money. Spraying the roof modernizes it inexpensively. Building on is expensive. Keep it simple.
Watching The Changes Happen
During the reno, they were there daily. Neighbours watched the activity. It started to shine. The dark facade was painted grey. The weeds became a lawn. Simple landscaping fixed the curb appeal. The front matters. It stops the car.
Inside, it became light and bright. Neutral tones are safe. Avoid crazy walls when flipping. You need to attract to the widest market. Blank canvas allows them to picture living there. The polished floors looked rich. It looked like a new home but solid.
I dropped in often. I offered tips. "Don't forget the light fittings," was my advice. Old lights date a house. New pendants went up. The house glowed. Time to sell. Total spend: $58,000. Duration: 2 months.
Marketing A Freshly Renovated Home
We hit the market. We styled it. Vacant rooms look small. Styling sells. It cost $2,000, the images were amazing. Online it looked huge. Rental investors looked at it because it needed no work. Families were the target.
The ad said: "Just Unpack and Relax." Buyers love those words. The launch weekend was busy. 45 groups. Everyone looked out of curiosity. But genuine buyers showed up. They wanted it.
We had a bidding war by Monday. The feedback was amazing. "I love the kitchen." Nobody cared about the past. The focus was on the new home. This is the power of presentation.
The Final Auction Result
We closed the deal in the mid $600s. Look at the profit. Cost: $420k. Reno: $60k. Stamp duty and costs: $25k. All in: $505,000. Sold: $635,000. Clear profit: Over $130,000. For a short project. Huge income. That is why people flip.
Not every flip works. If you pay too much at the start kills the profit. If you spend too much eats the profit. But if you buy right and renovate smart, you make money. In Gawler, you can do this. Find the diamond.
To find a fixer-upper, call Brad Smith. I find the dumps. I will let you know if there is profit. Get advice. I love these projects. Let's find your project. Call me today.
selling process gawler