Modern FlippingWednesday June 27th 2012
Every time we acquire a wholesale property, we have to make crucial decisions about the rehabilitation plans that can significantly affect the resale of the property. More than ever, we are investing in homes at higher price points and it's necessary for us to strategically rehab the property so that the finishes, appliances and styles will appeal to buyers seeking a home in an upscale neighborhood. As investors, our mind set is always focused on bringing in the highest cash on cash return on a deal while creating a home style that will appeal to a large number of buyers so the home will sell quickly. Modern architecture has always been faced with a sense of apprehension from the mass market. If we rehab a house in the clean, minimalistic style are we eliminating a huge segment of the market that this style does not appeal to?
We took the risk and rehabbed several homes in the modern style over the past few years and our own experience may surprise you! We flipped several mid-century modern homes that sold quickly in the 300-550k range. This spring, our team acquired an outdated Mercer Island home, gave it a facelift and created a tranquil, Zen-like home with expansive views of the gorgeous wooded lot. It received several cash offers over asking price within days. In January, we completed the rehab of a Mid-Century modern home in the Laurelhurst neighborhood, with a gray color palette, glass subway tile and top of the line appliances that sold for over a million one day on market.
King County's neighborhoods are unique because they offer a variety of housing styles. It's not uncommon to see a super modern house co-exist next to a 1920's brick Tudor home even in traditional, established neighborhoods like Mount Baker and Madison Park. Most of our modern style homes create bidding wars from buyers and sell over listing price in days! The tech influence of the area definitely plays a part in this, as this aesthetic is especially appealing to professionals employed by companies like Google, Microsoft and local start-ups. There is a huge demand for modern home due to their open floor plans and large windows that let the sunshine in and offer awesome views of the water or the lush, green landscapes of the Pacific Northwest.
Our project manager, Will Heaton, tends to favor natural materials like wood and stone in the rehab, because they create a warmer home environment that softens the linear detail of the exterior and interior. In the past, modern finishes and design were typically only accessible to the wealthy. However, in recent years, retailers like Ikea, West Elm and Lowes have created product lines for every budget. The possibilities are endless, making it feasible to do a modern flip on mid-range homes! It's so easy to go over budget on the rehab if you don't have a knowledgeable and experienced project manager that can guide you on what options to splurge on and which ones to seek out a lower cost alternative with the same look.
There is a common misconception that all of these modern homes will look outdated in ten years and fare poorly in resale. Let's get to the bottom of this. A home that is poorly rehabbed in mass-produced low-quality materials will show its age quickly. However, when done right, a modern home that is customized with quality materials, thoughtful planning and strategy will be highly coveted for decades to come. Modern will be the new classic in 40 years, just like buyers go crazy for historic Craftsman, Tudors and Mid-Century modern homes on the market now. Builders in the area are focused on creating modern styles due to this huge demand. Nearly every homebuyer that is choosing to build right now is opting for a clean and contemporary style. Heaton Dainard is getting ready to put one of its most exciting new listings of the year on the market. The brand new Isola build home is located at 310 19th Ave in Seattle. We are dedicated to building homes that reflect the evolving needs of our homeowners and communities. By continually implementing innovative sustainable design and environmental stewardship in our construction techniques, our homes stand for their livability, quality construction and energy efficiency." says Ron Fronton from Isola Homes. There is a high demand for an Isola built homes in this market, due to their commitment to quality and building green.
Heaton Dainard is available to help you purchase, fund, rehab and resell or hold your next real estate investment. Give us a call at Tel: 425.881.5131 or email firstname.lastname@example.org and get started today!