All right, today we are talking about renovating in order to resell the home.

And so Lincoln, what are some things that, some guideposts and some principles that people should consider and follow when they know they’re gonna have to sell pretty soon or immediately, but they really need a facelift on that home?

Yeah, one of the things I start with the basics is start with your kitchen, your primary bathroom, paint, just the basics of bringing up the value of your home is those main areas.

But when it comes down to the details, you know, I’ve discussed this before, it’s interesting because it depends on the neighborhood and the value of the house.

It does.

You know, if you have a home that’s more level entry or more of a track home, that’s, let’s say 2,000 square feet worth $600,000, most likely it’s not important to put in a lot of money into your house because you can only get so much out of it.

Yeah, just surfaces, focusing on essentially getting lipstick on it to make it presentable and clean.

And that smell of fresh paint actually goes a long way.

Yeah, and we have a cabinet line that is more level entry that is still beautiful, high quality that we’d recommend going with that and still making your house look gorgeous and still changing that environment.

But when it comes to the high-end stuff, that’s where you can really get your bang for buck.

Because in those cases, you know, you might be spending 300 bucks, maybe a little more per foot to do a certain add-on that could dramatically improve the value of your home if that neighborhood is going for 600, 700 bucks a foot or 500 bucks a foot.

Yeah, so let’s say I have like a 5,000 square foot home, there’s enough space in the area, and I wanted to add on, I wanted to convert my loft, and I wanted to add on, let’s say, a casino or some type of guest house next to my house, what kind of value would that bring?

Exactly, so, and again, there’s that whole work from home thing is so big now that having that extra tucked away space for an office, or gyms are real popular, or that extra mother-in-law suite, that can go a really long way.

If you’re paying 250 to 350 dollars a square foot to add these additions, but your neighborhood is giving them 600 bucks a foot or 500 bucks a foot, you’re adding value and you’re adding an environment that you want and desire.

And so that’s a win-win in my opinion, and win-wins go a long way.

Now, one of the things that is interesting is what we’ve noticed in the higher-end neighborhoods, the homes that are over 10,000 square feet, 12,000 square feet, at that point, I don’t think it matters as much how much square foot you add, it comes down to the quality, design, architecture, and we’ve seen that with our clients before.

Yeah, there’s a lot of homes on the market that are almost too big for what, and they still, it’s just a lot of bedrooms or just a lot of space that ends up going unused.

And those are tricky because there’s no effective way doing any sort of even surface remodel because the quantities are so large, it gets real expensive.

It’s funny that you say this because we’re actually getting ready to do a big remodel for a client, for a home that’s, I think, 12 to 13,000 square feet.

We’re gonna add a little bit of square footage, but not for the purposes of adding square footage, but to give a more grand kitchen.

They have lake views, and so we wanna make sure we open up the big slider doors to the lake views and just those basic details, and then we’re gonna touch all the surfaces because it’s outdated, but it’s probably gonna be a two to three million dollar remodel, but adding that two to three million dollars could possibly get them an extra two to three million dollars in value.

On top of the cost.

On top of the cost, yeah.

Yeah, so there’s absolutely a value proposition there.

There’s a spread that that client can get.

And it could be even more.

Honestly, it could be to the point where if you do it right and you have the right design, it could honestly be significant because at that price range, people are paying for an experience, and it’s almost like a trophy on some of these houses.

Trophy home, and it’s so dependent on the lot, right?

Because that’s one thing that you can’t change.

You can’t remodel the angle of the lot and what it’s viewing, right?

You can do landscape, but ultimately, yeah, if you need to rearrange that structure to really capture the space, then it’s worth it.

Yeah, so for our really high-end clients that have big, giant homes, putting that extra two to three million dollars can go a long way.

For those homes that are a little bit smaller that have a still strong value, a million and a half dollars goes a long way.

It just depends on what type of home you have, but those things can get you a lot more equity and honestly, you can enjoy it more.

Yeah, because another thing is to also look at is, okay, for new wealth that’s coming into the Valley, what are their options?

If you’re looking in the neighborhood of five to eight million, what are your options?

And you may not actually get everything that you want that you could get in a more established neighborhood that just needs to be updated.

So if you can check those boxes and still come in under the new product, it’s absolutely worth it.

Coming from where we come from, our background of investments and understanding the values and having a background in some real estate stuff, what kind of things that Kingdom & Co. offer to our clients that most people can’t?

You just have to understand, we’re not just construction guys.

We approach it from, hey, that feasibility study, understanding it’s not worth it to put the money here if you’re gonna save that and put it here because you’re not gonna get every dollar out if you do this.

We had one client and they were coming from L.A. and he wanted to put like 100 grand into the yard and the yard was already pretty nice.

And so we were talking them out of it.

Look, you’re never gonna get that money back out.

Like, okay, do a couple touch-ups in the yard, but really focus your money in the main living spaces.

That’s where you wanna put the money in.

That’s where you’ll get it back out and you’ll enjoy it more.

Well, it’s funny you say that because I remember meeting with some of our favorite clients, the Parkers, and they wanted to add another bathroom downstairs and it was killing their cost because there was no bathroom in sight.

And so we had to bring all this plumbing in and it made it way more expensive.

And I’m going, I finally reached out to them, I’m like, you guys really want this bathroom?

I go, it’s not gonna bring you value to just bring an extra bathroom down in this area.

There’s already one over here.

And so long story short, I talked them out of it.

And I said, put the money and your budget into the main areas and their house turned out incredible.

Yeah, it is.

And I guarantee you they do not regret putting in a bathroom in that one spot that was gonna cost them way more money than it should have.

So understanding that we really, at least I am and you are, we’re very passionate about not wasting money.

So don’t waste your money.

I’ve talked to so many people out of so many things because it doesn’t logically make sense.

Now, sometimes they get mad at me because that’s what they want and sometimes I can overstep my boundaries there because I’m like, it makes no, it doesn’t make any money, but sometimes they’re like, that’s just what I want.

I’m like, oh yeah.

That’s okay too.

I have to accept that.

I forget that sometimes.

Yeah, that’s okay too.

Gosh, I mean, how often, there’s a lot of times I see people get so hung up over a guest room.

Yes.

It’s like how often do you really have guests come in?

Well, once a year.

Look, create a fund of this is the hotel fund and put them in a hotel for the one time of the year they come.

And think that money’s put into something that you- And put it into something you’re gonna use every day.

Every single day, yeah.

Yeah.

I like that.

So yeah, at the end of the day, I look at value is very important for us because we do not want our customers to be, I would feel guilty for them to put too much money into their house and again, receive no value out of it.

I don’t mind if it, even if it was break even and they’re enjoying their space, awesome.

But I would hate to see them spend an extra 40 to 50 to 100 grand and not get it out because this really is an investment.

If they use Kingdom & Co. in the right manner, this is an investment, not a cost.