Professional flippers look for all kinds of ways that home improvement projects will benefit their property. But how can you tell the difference between home upgrades that are worth it, and those that aren’t?
There’s a widely held belief that any home improvement will eventually raise the property’s value. Even though this might be true in some cases, it’s true that not all renovation projects are successful. Still, watching a show like Fixer Upper can make anyone want to remodel their kitchen or build an outdoor kitchen and patio in their backyard.
Knowing which projects will actually benefit you in the long run and which are just a waste of time is the key to successful property flipping. The following list is a compilation of five home upgrades that will not pay off, and thus, you’re better off avoiding.
Want to succeed as a property flipper? Register today for access to my EXCLUSIVE online training course, ‘Finding, Fixing, and Flipping Properties’ and learn everything you need to get into this facet of real estate investing!
1: Home Office Remodels
The construction of a home office might appear to be the ideal addition to your residence. After all, post-COVID-19, a lot of people continue to work from home, so creating a quiet space with great bookshelves, cabinets, desk space, and other amenities could be seen as valuable to some.
On the other hand, a room designed specifically with the intention of being a home office can also be a bit of a deterrent for some homebuyers. They see it as a room they would have to remodel if they wanted to use it for something else, not necessarily as a great place to work.
So, when thinking of ways to highlight your property’s features, having rooms that can be used in more than one way is always worthwhile. For example, one person’s den could be another’s office space or spare bedroom.
2: Adding A Pool
When the summer heat sets in and it’s difficult to find a place to swim, adding a pool can seem like a great idea. Sadly, having a pool significantly lowers the value of your home, regardless of where you live or how warm it is all year round. This is mainly because maintaining a pool costs a lot, therefore homeowners are going to be responsible for its upkeep and the insurance.
Furthermore, pools are viewed as a potential danger by many homebuyers who have small children or pets. So, if you’re looking for ways to add value to your flip, don’t add a pool.
3: Remodeling The Owner’s Suite
When it comes to remodeling, a lot of flippers put emphasis on the owner’s suite. A luxurious bathroom with custom cabinets, a walk-in closet, and space for a king bed and possibly a sitting area—these are all things that homeowners envision.
Even though this extravagant upgrade seems like a no-brainer, attempting to add anything to your main suite will cost money. An expensive addition will cost you thousands of dollars but your return on investment will only be about half that.
Instead consider simply refreshing your master suite rather than carrying out a full renovation and look for less expensive ways to make the most of the space you have.
4: Opting For A Sunroom
In the spring and summer, a sunroom seems like a stunning addition. There is no better way to unwind and enjoy the great outdoors while keeping bugs at bay. However, what appears to be a sensible and useful addition fails to live up to its potential. You’ll only get half of what you pay for with something that costs more than $50,000.
In addition, even though a sunroom might be something you’ll use frequently, potential buyers might not see it as a useful room and won’t pay for it.
5: Additions To The Bathroom
Due to its actual necessity, an addition to the bathroom typically makes the project list. To accommodate the members of their family, families frequently discover that they either require an additional bathroom or need to expand the one they already have. However, even if you build a bathroom ‘cheaply’, it can still cost tens of thousands of dollars.
Your bathroom, like other renovations, will lose 50% of its value once completed, which is likely additional cash you won’t make from a home sale. Check to see if it is a worthwhile investment before constructing a space for a second bathroom in your home.
Learn How To Invest in Real Estate The Right Way
When it comes to flipping properties, every project is different. To get the best return on investment, pick and choose your home upgrades wisely. Sadly, not all renovations are created equal, and you may lose more money than you gain from your investment. To play it safe, first ensure that your proposed renovations will benefit your profit margin, not hinder it.
Not sure where to start? Ask an experienced real estate investor for guidance. To learn more about making the most from your flipped properties, visit The Wealth Connect today for countless resources and training courses designed to help you be the best you can be.
…Want even more ways to build wealth? Don’t forget to secure your spot for my EXCLUSIVE + FREE online training course, ‘Teach Me The Digital Products Game‘ and learn the simplest, most cost-effective ways to create and sell digital products in 2023!
Recent Comments