\u201cWhite boxing<\/a>\u201d in real estate is when a seller empties the property of everything inside to show it as a blank slate. This lets potential buyers visualize their own lives inside it and handle all of their own customizations from top to bottom once it’s theirs.<\/p>\n It\u2019s a newer term, rising in popularity over the last couple of years. And it\u2019s not uniformly used, explains Lynn Carteris, a top-selling agent with the Oldham Group<\/a> who works in California\u2019s bustling Bay Area. But it\u2019s a useful label to describe and understand a particular real estate market strategy.<\/p>\n To help you learn more about white boxing, the philosophy behind it, and the pros and cons of this approach, we put together this expert-backed primer.<\/p>\n The term white boxing in real estate refers to the practice of completely emptying a property before listing it for sale. Instead of encouraging buyers to see what it could look like to live in the home when it\u2019s fully decked out, white boxing strips down the space. It\u00a0 allows buyers to see a perfectly blank slate and envision how they would build it up, furnish it and create their own dream space.<\/p>\n To be a true white box, sellers will remove just about everything \u2014 not just furniture. That includes striking window coverings, removing light fixtures, and everything down the line. In the purest of white boxes, even the floors, paint and other interior wall coverings, and most plumbing fixtures are also removed, leaving concrete floors and sheetrock walls that can be customized to the buyer\u2019s exact specifications and style.<\/p>\n White boxing is most popular with luxury homes \u2014 often in major metropolitan markets<\/a> \u2014 where buyers might already intend to customize anything they buy to their liking (and have the budget to do so).<\/p>\n It can also be popular in homes where features like spectacular views or unique architectural designs might be less obvious if the room is finished and full of items. White boxing lets those standout features speak for themselves, and without any dilution of their impact.<\/p>\n Beyond that, white boxing can happen when people move out with a sense of urgency \u2014 such as, Carteris says, the wave of people leaving her state as companies seek more favorable business climates and employees work remotely in areas where the cost of living is lower.<\/p>\n \u201cThey can\u2019t get out fast enough,\u201d she says. \u201cSo I think we\u2019re going to see a lot more of these white box houses coming on the market.\u201d<\/p>\n Carteris also notes that going this route can be a better financial decision for sellers under certain circumstances. \u201cAll too often, a seller feels that doing the remodel themselves<\/a> would help improve the price, but so often we see that as not the case,\u201d she says. \u201c[The] buyer doesn\u2019t like the finished product, feels it\u2019s been done on the cheap just to get it to market, [and it] definitely does not make the seller more money. As a rule, I\u2019ve seen those sit and the seller taking a big hit, as buyers don\u2019t see the value and will have to redo a lot of the remodel themselves, therefore lowering their offer price.\u201d<\/p>\n The most obvious pro of buying a white boxed home? The customization opportunities are endless. You don\u2019t have to live with hokey light fixtures or carpeting that you hate \u2014 not even for a minute. You\u2019ll start from scratch on the home as its new owner, overlaying your personal tastes from the get-go.<\/p>\n \u201cI have clients currently looking for a white box in their price point. They don’t want anything done to it, they want to do it themselves,\u201d Carteris explains. \u201cIt also might be an opportunity for an investor to come take it down to one stud to qualify it as a remodel in the eyes of the county and city, and remodel it and still make money.\u201d<\/p>\n Also, when you consider a white-boxed property, any potential issues with the house may be more apparent. There will be fewer mysteries, fewer places for problems to hide, and the home inspector<\/a> will have an easier time evaluating the place with its inner workings laid bare.<\/p>\n Evaluating the space will also be easier for the potential buyer, who will be able to focus on home features besides the interior space.<\/p>\n The flip side of that same pro could also be a con, Carteris says. \u201cIt’s just like having surgery: The doctor doesn\u2019t know what he\u2019s going to find until he cuts you open, and it\u2019s the same thing with a house,\u201d she says.<\/p>\n \u201cYou may find stuff in the walls. You may find electrical done incorrectly. Chances are with an older home, you’re going to have to replace all the electrical and plumbing anyway, and it can be outrageously expensive.\u201d<\/p><\/blockquote>\n Another point to make: If you hadn\u2019t known about all the potential for immediate upgrades<\/a>, you might have been able to live comfortably with the older infrastructure for longer \u2014 even years, perhaps \u2014 before it presented any problems requiring attention (and expense).<\/p>\n Further, a white boxed home, as a blank slate, is not move-in ready. These homes will require at least a little bit of elbow grease (and probably more<\/i> than a little) before you can move in, especially if they are truly white boxed.<\/p>\n Of course, getting there requires money. Plus, depending on how available contractors are in your area, the process could take a considerable amount of time before you can ever occupy the house.<\/p>\n Carteris notes that contractors are especially busy this year, with many people choosing to remodel as they\u2019re spending so much more time at home<\/a> because of COVID. \u201cThe price of lumber has tripled, the granite maker is taking longer because they’re in such demand,\u201d she says. \u201cSo it’s going to cost you more [to remodel].\u201d<\/p>\n She advises clients to think seriously before they commit to getting \u201ca good price on the house and property taxes\u201d if it means \u201cyou’re going to spend triple\u201d on a remodel in the end.<\/p>\n In other words, with a white boxed home, you might<\/i> be getting a good value \u2014 but you also might not. And you might only learn that it\u2019s not a good value through a potentially stressful, expensive, and time-consuming process.<\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/12\/white-boxing-real-estate-ladder-666x381.png\")
<\/a>What is white boxing in real estate?<\/h2>\n
Why might a seller white box a house?<\/h3>\n
What are the pros of white boxing for buyers?<\/h2>\n
Customization<\/h3>\n
Transparency<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/12\/white-boxing-real-estate-home-666x381.png\")
<\/a>What are the cons of white boxing for buyers?<\/h2>\n
Older homes might need a lot of work done<\/h3>\n
White-boxing can force unnecessary upgrades<\/h3>\n
You\u2019ll need to pay to finish the house, and wait to move in<\/h3>\n