Flipping houses is an age-old technique used by savvy real estate investors to make significant returns on their investments. However, as with all industries, there are right and wrong ways to go about these tasks.
If you fail to adhere to a few basic premises, you risk losing out on your overall investment or simply not making as much as you could have done. Do things right, and you stand to turn a significant profit that you can use to reinvest in future projects that, if you follow the same rules, stand to compound your wealth over time. One of the most intriguing ways you can help boost your overall profit is by focusing on fixing up the home and turning it into something far more desirable than what is c currently on offer in the area. This post explores several home updates that will enable you to realize far better returns by updating various features and rooms throughout the property.
Invest In High-Quality Countertops
Due to the impact a kitchen has on the price of a house, it gets two separate sections in this post. The first revolves around replacing the old countertops with new, more thoroughly modern materials that complement the space and create a visually pleasing first impression. When it comes to this feature, you have numerous options depending on the look you hope to achieve. For instance, wooden materials will generate a more rustic appeal, while smooth granite counter tops help to develop a more modern, cleaner type of aesthetic. These kinds of quality materials have risen in popularity with contemporary house buyers and can create a far more rounded, polished look with a relatively minimal amount of effort. Buyers will take note of these nuanced design details when they enter the kitchen and immediately put them in the right frame of mind that you can eventually use to ask for a higher amount during negotiations. Just be sure that you have set up your budget correctly so that you avoid the dreaded flipper trap of investing too much in the hope it will raise the price. In other words, know the number you want to achieve and keep all modifications firmly within it.
Upgrade Outdated Kitchen Appliances
Now we move on to the second part of the kitchen equation, which is the appliances and white goods. When renovating a property, upgrading the usual outdated appliances that tend to become included in a sale is a worthwhile expense that can significantly increase your overall returns. Buyers have become accustomed to higher-end features and a modern design aesthetic, even when on a budget. Replacing dated appliances is an easy win and a way for flippers to add perceived value while reducing the need for expensive remodels. Gone are the days when a home with its original 1970s beige appliances could still attract top dollar. Today's house shoppers are far savvier than those of yesteryear and demand stylish stainless-steel refrigerators, smooth top ranges, and fashionable built-in microwave ovens.
Those touring an open house take note of tired, scratched metal doors and loud ancient dishwashers. Making these relatively minor changes (small in terms of the grand scheme of the process) creates an appeal that draws in buyers and sparks bidding wars. New appliances signal to buyers that the flipper cares about little details and modern functionality. In addition to these points, photos that showcase sleek new devices have been proven to generate more interest from serious buyers, and you may recoup your initial investment and then some for a few thousand dollars initial investment. If you are on a strict budget, you can still achieve desired results by combing through sale listings, purchasing used but modern options, and cleaning them up yourself. If they are in very good shape, you should get similar results as if you bought them new.
Neutral Paint Colors Increase Appeal
Modern buyers tend to want a blank canvas over the gaudy accent walls of the past. They desire a space that they can genuinely make their own. However, leaving the walls in the same condition as when you bought the house will undoubtedly have a detrimental effect (unless it was already in great shape). Opting for neutral tones over those you personally prefer makes it easier for potential buyers to project their own style into the space and may nudge them to make an offer sooner rather than later. Neutral hues signal to buyers that the flipper cares about creating a flexible living space.
Unlike out-of-date hues like reds and greens, visitors to your home will not be put off by neutral cream-colored walls. Listing photos showcasing neutral tones generates more interest from serious home buyers who don't need to spend extra upfront on a repaint. For a few hundred dollars investment at most for paint and supplies, returns are high. The best part? You can perform this task yourself to save money and further increase the amount you will ultimately make. However, unless you are a relatively proficient painter, it may still be worth investing in the skills of a professional who is able to perform the task to a much higher standard.
Put In Place Energy-Saving Equipment
As we continue to grapple with climate change and more and more money is being invested in so-called green energy and efficiency projects, updating your investment to become more energy efficient could be a fantastic way to boost the price you ask for it. In an age when climate change weighs heavily on buyers' minds, homeowners want sustainable living spaces that limit carbon footprints and utility costs. Making strategic efficiency improvements creates long-term value as well as strong first impressions. Those touring an open house will take note of updated features like programmable thermostats, LED lighting, and double-paned windows. Such changes signal to the potential buyers that you have invested wisely and have a desire for the buyer to move in and hit the floor running. Moreover, it is a great way to add more valuable information to the listing that should help convince people to, at the very least, book an appointment to see the property.
Replace Worn-Out Flooring With Quality Materials
Nothing says "I don't give a damn" than old, worn-out flooring. In fact, because it will be perhaps the very first thing a customer sees as they walk through the door, updating the floor to something fresher can pay dividends. Making the relatively small change to remove old carpet and refinish hardwoods or install luxury vinyl planks and tile creates instant curb appeal. Hardwoods refinished to a high gloss sheen or planks that resemble hardwood but at a fraction of the cost can lend themselves to a higher resale value. However, this is one place where you will probably want to spend a little extra to make a significant difference. For example, instead of buying low-quality vinyl for the kitchen or bathroom flooring, it is much better to invest a little extra to get something more hardwearing and add an air of sophistication to proceedings.
Install Modern Light Fixtures To Complement The General Style
Lighting maketh the home. As anyone who has lived in a house with poor natural lighting or dimly lit rooms can attest to, a well-lit room has a certain appeal that is hard to quantify. This also relates to the fixture that holds the bulbs that provide the light, and if you have the chance to update the look of an outdated lighting fixture, you really should jump at the opportunity. Potential buyers touring an open house take note of boring bare bulbs or mismatched styles as a missed opportunity. Making the relatively small change to ceiling lights, pendants, and sconces creates an ambiance buyers find appealing. Sleek modern fixtures signal the home received thoughtful aesthetic touches.
Enhance The Curb Appeal With Landscaping
There is no point investing your entire budget on the home's interior when the vast majority will create a first impression as they approach from the outside. Cosnqunrtyl investing slime of your resources into landscaping can have an enormous impact and plant a buying seed before they have even entered through the threshold. Even if the yard has been expertly landscaped and is looking amazing, it can pay to put in a little more effort vis-a-vis cutting the grass and planting a few more interesting plants to add color and vitality.
Update Bathroom Fixtures For Luxury
Aside from the kitchen, no other room has such an impact on a buying decision as the bathroom. Consumers now anticipate beautiful bath spaces rivaling spa standards. Serious buyers are drawn in by polished fixtures that elevate the home's value. For just a few thousand invested, the returns are high and should vastly exceed the amount you put into the project. In reality, this means waterfall showers, jacuzzi bathtubs, highly polished stainless steel faucets, and more. Just be aware to match the design elements to the budget you are going for. You don't want to spend a fortune on a property that is in a low-value area. Nevertheless, these little touches can have truly outsized impacts if you are in a high-value property region.
Updating the features mentioned throughout this post will give you the upper hand when it comes to attracting customers and negotiating prices. A small amount invested upfront can yield a tremendous amount of return when you finally flip the house.
