Alexandria Stout

Before raising the price, I'd review how many showings you've had, what feedback keeps coming up, and how your home compares to similar homes that are selling or going under contract. Think about it from the buyer's side, too. At $565,000, a buyer putting 5% down needs $28,250 for the down payment alone. Using a rough closing-cost estimate of 2"5%, that's another $11,300"$28,250 before any credits or assistance. Adding an immediate HVAC expense can make an already expensive purchase harder to manage. There's also a difference between a home without central air and one with a broken heating and cooling system. Depending on the loan, adequate working heat may be required, and certain repairs may need to be completed before closing. That's something to confirm with the buyer's lender. Your break-even number matters when you're looking at your investment, but it doesn't determine what a buyer is willing to pay. Installing central air may make the home more competitive without increasing its value by the full installation cost. If updated comparable sales support $575,000 with the new system, consider it. If they don't, raising the price could mean more time sitting and more holding costs. For your next flip, I'd have an agent prepare a market analysis before you buy and help identify what buyers expect at your planned resale price. Build your purchase and renovation budget around a realistic sale price, with room for unexpected expenses and holding costs. That can help keep you from getting squeezed at the end.