The goal of flipping properties in real estate is not just to make it aesthetically pleasing to the eye or riddle it with fancy touches to impress a buyer. A property must look neat and desirable yet the goal of every investor is making the highest possible return on investment for each flipped property.
To have enough budget to flip a property isn’t an excuse to overspend. The goal is to spend wisely on repairs and profit nicely from the difference.
Before setting out to purchase in a particular community, always run a background check to ensure you’ll get maximum profit if you purchase a particular property. Speak to a realtor with experience in selling property in that area. Also, do well to know how much the houses in that community cost or how long it takes for each to sell. An analysis of this will help you decide if you should purchase before getting to the repair stage.
If the community and house are good for business, you need to add value to the building and not just renovate in a bid to wow potential buyers. You must add quantifiable value by following these key steps.
The Kitchen Renovation
Renovating the kitchen tops the list of places to touch on to add value to a home. Of the key places that investors and homebuyers look at is the kitchen. There was a time that the kitchen area was hidden from plain sight. In recent times, modern kitchen designs are developed to be pleasing and well structured. For this reason, many now focus on having a well-designed kitchen area since the new culture of design allows visitors access to the kitchen.
So, the first place potential buyers check is the kitchen. And that’s why you have to pay close attention to what is needed to be fixed or if a total renovation is necessary. Check the countertop, the cabinets, and the floor plan. If any is totally out of date or too old, a deep renovation will be needed. Installation of a new floor or countertop may suffice.
If the countertop is comparable to what is still in vogue in modern homes, then a selective renovation will put things in place. The repair may not need the floor plan and material to change. Regardless of the depth of repair needed, little finishing touches may require modern fittings. The knobs of doors, handles, and other hardware that make up the kitchen.
The next is the bathroom. The bathroom can likewise go through selective repairs or extensive renovations. Check out the common bathroom design in the community of the property as well as the general flooring types used. Do this assessment and compare it to the bathroom of your property. The comparison helps to determine what type of repair, renovation, or remodeling the bathroom needs. For a bathroom in good condition, a selective upgrade maybe all the bathroom needs to regain its look and turn to a new design. In the case of a selective upgrade, you might consider fixing a new faucet, new sink designs, new toilet seats, and more.
As regards the bathrooms that compels the use of new materials to totally replace the old types, flooring types like linoleum are definitely going to get replaced with modern floor types as true of wall tiles, bath tubs, and the positioning of the toilet seats towards achieving an impressive visual appeal.
So the kitchen and bathroom are two major places in the home deserving keen attention in the process of adding the most value to a fix and flip property.
Landscaping should not be pushed aside. As much as high value gets placed on interior quality, the outdoor outlook can also give an impression at first sight. So, it’s a journey with a connection. Start to impress right from the exterior to the interior of the home. There are two ways to also go about this. Evaluate the condition of the landscape and ascertain if the entire landscape requires an overhaul or selective repairs.
The landscape must look pristine and appealing — the grasses green and well-trimmed, flowers growing actively, and well-mulched gardens. Have all these done in a bid revitalize the landscape.
For selective repairs, flowers at the front of the door and a decent walkway of well-manicured grasses deserve attention to make the exterior appealing. Although the backyard may not look so attractive. Yet it must be in good condition. However, you may not spend excessively on it trying to make it look perfect — you save money in this aspect.
Lighting adds to the beauty and appeal of the Interior of the home even in the daytime. Lighting can also fall into the improvement category or full repair. If the light fittings are still modern just that a couple of bulbs have gone out, a quick repair may be possible without professional intervention. If on assessing the lightning the fittings are outdated, then a purchase of modern and chic lighting and switches will be necessary to bring the property to standard.
Energy Efficient Hardware
Energy efficient hardware used in the home gives a chance to justify a high price tag on a property. Install energy-efficient bulbs, appliances, double-spaced windows, led lights, and many more energy-conserving fittings. Research to confirm how much these energy-efficient appliances save a homeowner monthly or yearly. This is sure to impress the buyer and prompt a purchase knowing they are getting value for money.
So there you have it! A list of various ways to add the most value when flipping properties. Remember that you don’t have to overspend. Despite the abundance of capital you may have, the goal is not to overspend on the renovation. While you must do a quality job, the focus is getting a good return on investment.
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