People are often asking me how I find the homes I renovate? How do I decide to make a purchase? And how do I approach the renovation? There are so many factors at play - and there’s definitely a mix of my gut feelings, number crunching and perhaps a little magic.
SAVVY FEMALE SEEKS FIXER WITH POTENTIAL
Whenever I’m not fixing a home, I’m seeking one. I gather information from a variety of sources in hopes to find that perfect gem: a solid home with tired finishes at a reasonable price.
On the Market: I always have a search (or more) set up on a the RMLS. It’s not always easy to find them on the market - but there are often overlooked gems on there. The purchase works very similarly to any normal purchase - where I submit an offer on standard contracts and proceed to represent myself as I would any client. Most recently I purchased a short sale on the RMLS. Ask me about my 5 month adventure!
Wholesale Deals: Another common source is wholesalers. They typically sell homes at a discounted price to cash investors. They communicate with texts and emails - often multiple times a day. A lot of these are out of my “buy box” (the location/price/type of home) - but every now and then I find one that piqued my interest. They wholesalers often include comps and pro formas to show you how much money you can make. However, I don’t trust the numbers at all; they are often grossly misrepresentative to what the actual costs are (seems like they are using costs from at least 10 years ago!). The way these purchases work is quite different from a home on the market: they usually host ONE open house period for all interested buyers - then offers may be due later that same day. No inspections (though some will provide a sewer scope and oil tank scan) - so not for the faint of hear!! And they provide their own contracts, which are very simple.
Is that a House in Your pocket? I’ve found a couple of my Kateovations as “pocket listings”. This is when a seller is working with a listing agent, but does not want to put their home on the market for whatever reason. These sales work very much like a market purchase - but little to no competition. These pop up based on relationships I have with fellow brokers who know (and like) what I do.
Sold to the Highest Bidder: I’ve never purchased a home at an auction - but it’s something I’m ready to explore. You have to be prepared with a cashiers check (or multiple checks!) and a hefty tolerance for risk. Not only will you likely not set eyes on the property - but you may be inheriting additional debt/liens.
IS IT OFFER WORTHY?
What motivates me to make an offer on a property? Like me - it's a mix of right brain-left brain thinking (and TBH if I am struggling to make a decision, I often pull a tarot card to help me decide!).
Number Cruncher: The first step for me is to look at the numbers. I have an elaborate spreadsheet that allows me to see if the project might be worth it. This requires me to evaluate comps to see what the house could sell for once it’s been renovated. I eyeball the costs to update based on the photos (broad strokes for kitchen, bath, lighting - and anything that is either obvious or stated in the listing that needs to be replaced/repaired (roof, sewer line, etc). If the high level numbers look good, then I’m ready to tour the home in person. Note that I often get really excited about a fixer on the market, only to find it’s priced for a home buyer not an investor. I often have to compete with home buyers because they can also pay more for a property than I would, since they are not aiming to make a profit.
Go With your Gut: it’s always about my gut feeling when I walk in the door. If I immediately start visualizing what I can do in my head - then we are on the right track. I like seeing interesting original details that I can keep. I like a layout that works well. Location matters, obviously! But I don’t usually look at homes that are too far away, on excessively busy streets, or an area that may be difficult to sell. Mostly it’s a feeling I get that this will be FUN and I know what I can do to bring this home back to life.
On the flip side, I sometimes walk into a home that horrifies me. It may be in such a state of disrepair that I can’t even imagine it spruced up. Or maybe it’s so fundamentally flawed and ugly that it doesn't make sense. I once walked into a home owned by a hoarder and I literally could not see the floor. The junk was stacked to my shoulders. I literally could not walk more than a couple of inches. This type of fixer is way too much for me. I also shy away from homes that need all new siding or homes that would need a building permit (I like to be in and out in 3 months or less).
Systems a Go: Next I look at the condition/age of major systems to see what needs to be replaced. The roof is a big expense! A big, old oil tank can cost thousands to replace. Is the panel original? Do I see stickers for permitted work along the way? Looking at Portlandmaps.com gives me an idea about any permitted updates and when they happened. You know what's really weird? If a furnace was replaced in 2004, that’s not 10 years ago - it was 20 YEARS AGO. I often giggle to myself when I realize it’s so easy to skip a decade.
Inspector Gadget: When I’m lucky enough to perform inspections, I usually perform a sewer scope, oil tank locate + radon test. My general home inspection is a “walk thru” - usually intended to learn about any major issues that I would need to address. I don’t typically do a full inspection because I’m usually changing so much.
KATEOVATION 101
Let’s say the house meets with my expectations. People always ask me how to figure out what to do?? Well, this is my love language! Researching options, seeking inspiration is something I do all the time. When a house is in play, I turbo charge. I always set up a Pinterest board to save my ideas and start to curate the vibe for the house. I’m visiting tile, flooring, paint, wallpaper stores. I’m touring homes, reading magazines. I’m also looking at fashion trends and colors- as I’m often inspired by fashion (remember, I used to own a women’s clothing boutique - so this is in my DNA).
Year Built: The inspo comes first and foremost from the era of the home. If it was built in the 1920’s - I’m looking at trends from the 20’s: what types of plumbing fixtures were popular? What flooring was typically used? Color palettes, light fixtures, trim…I do like to start with the era and then twist it with modern interpretations or juxtapositions. I don’t feel the need to be 100% historically accurate - it often doesn’t make sense and it may end up too kitschy. But I do like to keep the flavor of the era - especially if the home has original details intact.
Color: I love color so much - this is usually a primary driver in developing my Kateovation. It’s usually inspired by something in the home - perhaps a blue countertop or maybe a lovely tile. The exterior often informs the interior too - I don’t like a big disconnect between the interior and exterior palette. In fact, I often find a common thread throughout the home to tie it all together. In the Simpson house, it was blue. We had a deep, dark navy, a bright sky and some prints that brought it together.
Seasons, fashion, and just plain mood also play heavily into my decision making. Do you feel color moods? I do! I go through phases where I'm really drawn to a color and want more of it in my life. I was the girl who updated her bedding each season so it “matched” the weather. I love combining colors and really get excited when I find a good wallpaper that includes my inspo color with others to surprise me!
Nitty Gritty: Of course, it’s not all just fun stuff, I must fix a lot of stuff that just has to get done. Whether it’s a new electric panel or water heater - some of the updates are decidedly unsexy. Ideally, I can fix + replace what’s necessary to make the home top notch, restore what can be brought back to life (like hardwood floors), and add personality galore.
KATEOVATION PHILOSOPHY
I am not a typical flipper that just chooses finishes that make the most profit. I will always put style and function before profit. I would not add a plastic surround to a bathroom because I would not like that (I will tile that shower to the ceiling, dammit). I would never install a boob light to save money on light fixtures. I would not install bargain-bin gray wood floor. I do these projects as much for my own creative fulfillment as I do to help make money for my family and the plethora of people I hire to bring it all together.
I really think about the people who buy the house and try to deliver a high quality product that is both beautiful and functional. I tend to go above and beyond to make the home as special as possible. Whether it's ordering custom tile, adding a bookshelf that coverts to a bar - or simply a stunning designer wallpaper. My goal is to deliver a turn-key property that has original details, thoughtful updates, gorgeous finishes and an overall presence which #ignitesdelight and brings joy.
Interested in pursuing your own version of a Kateovation? I offer mentoring to a few select women!
I can also help you get your home list-ready with a mini-kate-ovation!
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