When fixing and flipping a real estate property, you no doubt have discovered that there are many renovation projects to choose from. Typically, necessary repairs are obvious and often required to flip the property; but when it comes to improvements and upgrades, the decision process can be significantly harder. Your profit margin will be affected by the choices you make.
Below are some proven areas where renovations can increase property values and by extension, your ROI:
First impressions about a home are made within minutes of pulling into the driveway. Consider replacing faded or damaged siding and shutters, pressure washing brick, painting unsightly trim or installing a new front door. Other easy and inexpensive fixes include installing a new mailbox and making sure that walkways are clean and free from weeds or other debris.
Year after year, research shows that most families spend the majority of their time in the kitchen. Realtors also report that many potential sales fall through because their customers are not satisfied with the kitchen.
While granite countertops and custom cabinets are beautiful and appreciated by buyers, these items are expensive and will cut into your overall profit. Consider painting or re-staining existing cabinetry and installing composite material countertops that mimic the look of granite. Composite countertops can be used as a selling point to buyers, as they require less maintenance. Consider installing new appliances. Don’t splurge on the latest and greatest, with all the bells and whistles. Often, a clean, new, simple appliance will do the trick.
If the kitchen is dark, think about installing a light source. When possible, add a small window to allow natural light to enter the room. If this isn’t practical, decorative lighting can be another inexpensive option that yields great results. A fresh coat of paint and affordable tile or laminate flooring will bring a fresh, welcoming feel to a family kitchen.
After kitchens, bathroom spaces have been shown to increase property values immensely. Typically, floor space in a bathroom is limited, which means that installing updated flooring is an affordable option; in addition to a fresh coat of paint and updated sinks and vanities. Similar to a kitchen, adding a source of light will boost buyer appeal, without breaking the bank.
Don’t forget that potential buyers will appreciate the attention to detail. Consider changing light fixtures throughout the house, replacing electrical plates or installing new heating and air registers.
Updating your property in these areas will give you the best chance at flipping your home successfully. Be wise and frugal in your approach and don’t forget to consider the neighborhood, along with the needs, wants and characteristics of potential buyers. Determine beforehand how much you are willing to spend and how soon the project needs to be completed.
For more information about purchasing and flipping a property, contact Black Square today!