Real estate is unique and very localized. While there may be some shifts in pricing, according to Forbes, economists aren’t in agreement on what we can expect in the 2023 market. And lately, there seems to be a return to the multiple offers and supply shortages. As investors, the one thing we can control is the renovations that are made to the properties we’re working on.
As house flippers, we can make decisions based on our finances, experience, and market knowledge. The goal is to buy low and sell high in any market, so we want to focus on adding value. Let’s get into the best renovations to increase the value of a traditional home sale and how to use them for a flip project.
1. Curb Appeal
Curb appeal is the first impression. Whether in person or through online photos, the curb appeal can make or break it. Prospective buyers will make assumptions about the entire house beyond the exterior, so these renovations are key.
Home Light found exterior paint adds an estimated 152% ROI, and a new garage door has an estimated ROI of 133%! These updates may not be necessary for your project but they show the importance of curb appeal.
Remember, we want people to come through the door. Some essential exterior improvements include basic landscaping and renovations like replacing siding, adding a deck, or leveling up the entryway.
- Floor Plan Changes
A flipper should prioritize creating a functional floor plan over most possible renovations. The more livable square footage will likely increase your appraisal value.
Functional floor plans will have open spaces and practical layouts with open concepts. It is also essential to add as much storage as you can. One way to do this is with walk-in closets. Other attractive features include more prep space in kitchens, large bathrooms, and creating mudrooms for entryways.
These renovations are more of an undertaking than manicuring the exteriors but will skyrocket value and get more eyes on your flip home.
3. Upgrade Bathrooms
Everyone loves a luxurious bathroom. As mentioned above, bathroom improvements are a great way to improve the functionality of a floor plan. These bathroom upgrades can include increasing the size, adding where they didn’t exist, and more minor updates like rain shower heads, double sinks, soaker tubs, and ample closet space.
If you’re working with less space than you’d hope for, utilize mirrors and plants for a more airy and large feel.
4. Install a Kitchen Island and/or Walk-In Pantry
An elevated kitchen is at the top of most buyers’ “must-have” lists. Renovations to the kitchen can add value to your flip.
Installing a kitchen island or walk-in pantry provides functionality, space, and an elevated feel to your flip. The kitchen is a central home space and should be treated as a priority for renovations.
Some kitchen renovations I recommend include:
- Kitchen island if permitted in the space
- Walk-in pantry or pantry cabinet if space allows
- Additional cabinets and storage space
- Updated lighting
5. Create or Convert a Home Office
More than ever, work is done at home, and building or converting other space to a home office is a highly appealing improvement. Some options for converting include walk-in pantries, walk-in closets, or another unused space that is ideally at least 100 square feet.
Regardless of the size or features, this dedicated space is a massive bonus to buyers. Many homes don’t offer a room for an office (or exercise room, whatever you feel works best). Therefore, you’ll have the edge over the competition and utilize all the space for functionality
6. Expand Your Outdoor Space
In 2023, the forecast is that buyers will maintain an interest in outdoor spaces. Using these extensions of indoor space allows for activites, entertainment and gardening, to name a few uses.
I always recommend a deck or patio where space allows. This added space not only adds to the use of a home but it can add appreciation from an appraisal perspective too. Refreshing a deck or patio will always be a good idea and is often a budget friendly way to go. Avoid overspending in this area for the type of outdoor areas that may be considered taste specific. Refreshing and staging goes a long way.
7. Modify Your Home for aging or intergenerational living
This renovation choice is something few people consider. In the current market state and a shift in preferences, more people will modify their homes to suit their needs. Additionally, with space for children, they can move in, and go about their lifestyle with an intergenerational living space.
While you don’t have to create a mother-in-law suit or separate dwelling, it is an option. Keeping family close has become more of a priority, as well as the number of parents aging into the phase of life they need help.
Going a step further with universal design features can also add value. These renovations should blend with the look and feel of the home but provide access and ease for those aging in place. A great option for realistic renovations for aging in place includes adding a bed or bath in an unfinished lower or upper level for the guest or junior suite.
8. Make your Mudroom larger and more functional
I mentioned a mudroom when discussing floor plan renovations. Making an existing mudroom bigger and more functional is a great way to add value to the home. Mud rooms are the “drop space” and can get crowded quickly.
A large, functional mudroom is a massive perk to many buyers. Features for your mudroom include a laundry area, charging stations, shelving, and storage. Don’t forget about small additions, including adding hooks or a bench.
9. Small Renovations
While there are several renovations with a more significant price tag that is worth it to add value, don’t underestimate the impact of the small changes.
Depending on your budget, you might opt for more extensive renovations. Some flippers may opt for some minor renovations alone. Some minor changes I recommend include:
- Cleaning up the interior and exterior of the property
- Adding fresh paint
- Taking care of any repairs
- Replacing hardware or items that are outdated
- Resanding floors
- Filling in caulk or grout
- Adding lighting
Renovation Choices are Dependent on You
These recommendations are a general overview of how to increase a house’s flips value. Adhere these tips to your unique flip project, needs, budget, and timeline. It doesn’t matter how much value you add if you’re overdoing your renovations and investing too much of your budget.
Opt for the necessary changes, and go big on renovations when it works. Or use these tips to stage these areas to their maximum appeal. There’s always options.
Looking for ways to level up your flip design? I’ve got you covered
I have a great course for you to get multiple offers in any market! Learn the high-end flip design tips I use in my projects! Check out the High-End Flip Design Course here.
Just getting started? I have the perfect place to start! Check out my Find my Flip course. Walk through 3 properties with me as I’m searching for the next flip project.
I also have some resources I’ve put together to help you get the information you need to move forward on creating your flipping life.
Make sure you have the Fixer Upper Checklist so you know which areas are key to added value in a home.There are several videos on finding houses, renovations, and funding on YouTube. Check out your favorite flipping topics and new videos weekly!
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