Anytime you are taking on a flip you are definitely going to want to make best use of your budget. There are three specific areas where you can make significant changes that will pay off. These improvements not only benefit a home buyer but they increase the overall value of the home as well.
When you are flipping a house, it is easy to get caught up on the interior. Before you know it, you may be just about finished with the project (and your budget), you realize the exterior isn’t quite what it should be. If you have that feeling, then your buyer is certainly going to have the same reaction. The better the home looks from the outside, the more likely you are to draw someone to the inside.
Since curb appeal is so important not only to buyers, but to the neighborhood as well, you are going to want to make the most of it. Even on a beautifully done home, if the exterior siding is worn it can make buyers pause and wonder about the expense to replace. Installing a fresh maintenance-free siding product not only creates simplicity and ease for a home buyer it allows your house to make a first impression that is memorable and hopefully offer worthy.
2. Large Scale Kitchen Renovation
This is the grand daddy of major improvements. Kitchens sell homes. This is where the walls and soffits come down and a blank space can truly be transformed. Now, not every flip may need a large scale renovation. Depending upon the the neighborhood, the resale price point, and the condition of the current cabinetry; you may be able to work with what you have.
In my experience, replacing the cabinets has always been a better option. After removing walls and creating a more efficient layout, cabinets are often unable to be reused. The kitchen will be the space your buyers fall for by creating efficient layouts, adding cabinets for storage, and installing an upgraded cabinet in a desired finish. Also, installing kitchen appliances, a counter top in a quartz, a stylish backsplash, and lighting with an unexpected finish, can contribute to the creation of a space that will truly be a standout.
3. Adding a master suite
One of the best ways to add value to a home, is to create usable living space where none existed before. So it is true with the third of these major improvements. With a master suite, this can often be done by finishing an attic. These spaces are common in older homes and may already include insulation and walls. However, it’s not out of the question to find that these spaces are unheated or lack duct work for A/C. Adding not only a bedroom, but a bathroom and a walk in closet, maximizes the usefulness of the space. It also adds significant value to the property from an appraisal standpoint and from a resale perspective.
As with any renovation, you will want to make sure that you are not over improving. And that you are maintaining your budget to avoid additional expenses. Researching resources for materials you can purchase online such as tile, lighting and vanities can be helpful. Also, check prices for siding. Have your installer check various distributors to see if price matching or contractor discounts are available. This can also help you manage your expenses. Focusing on one of these major improvements will definitely add value to your next flip.
Ready to Flip????
After more than ten years of renovation and real estate experience there are a few things I am always on the lookout for when I walk through a house.
These are crucial areas that can increase a home’s value with renovations and help you to maximize your profit.
Love before and afters?
Find more tips and inspiration for home flipping on my Pinterest board: Threshold Homes |Home Renovations, Remodels, and Designs.