Part of learning how to flip a house is learning how to gain efficiency. In other words, how you can most improve the value of the home on a minimal renovation budget. To do so, you need to have a general understanding of what buyers or renters look for in a home, and what renovations will give you the most bang for your buck.
We’ve outlined 4 home renovations that buyers highly value, and that investors should look to spend their money on in order to successfully flip their investment.
- Kitchens hold the most value
Kitchens are a central location in any house. It’s where meals are prepared and shared, where guests gather and connect, and where many memories are made in a home, but it’s also a room that ages quickly. Buyers put a lot of stock into the style of a kitchen, meaning that investors should put a good amount of planning into improvements here, as well as a good chunk of their renovation budget if needed. You can be selective in how you go about remodeling a kitchen.
For example, if the cabinets seem a bit dated, but structurally strong, maybe they just need be repainted instead of totally replaced. Need a new countertop? Look at cheaper options like quartz, which can give the same polished look as granite, but for a fraction of the price. Save time, energy, and money where you can, while making improvements that will make a big difference.
- Bathrooms need to be refreshed
Savvy real estate investors know that the best home improvements don’t always require a new floor plan or top of the line additions. A lot of times, all you need is to refresh the spaces that gets worn or outdated quickly – like bathrooms. A fresh coat of paint, new fixtures, and new cabinets can go a long way to making it modern again without taking too much out of your renovation budget.
- Exterior aesthetics can change everything
If the house was built more than 20 years ago, the chances are high that the outside of your house does not match current trends for new builds. Repainting the exterior, adding a new front door, replacing awnings, and updating the porch can make a house look completely different and transform it into the modern oasis that buyers are looking for. Do some research and look at homes in the area and see which homes are being bought up fastest. You can take some inspiration from those homes to see what look buyers are attracted to.
- Landscaping adds curb appeal
Buyers judge whether or not they’ll love a home as soon as they see it from the outside. Their first impression of the outside of the house has a big impact on their emotional connection to it – ultimately effecting whether or not they’ll put an offer in. If the exterior of the house has been updated, you want to make sure to complete the presentation with beautiful landscaping. While you can go full steam ahead with pristine lawns, luscious flower beds, and charming fixtures, you can also just focus on small improvements, such as potted plants and lined walkways, that will make the house feel like a home.
Not all home improvements carry the same value, and there are so many other improvements that you can make to a house that aren’t included on this list. However, to ensure that you’re spending your renovation budget wisely, it’s key to know your market and understand which improvements those buyers value the most.
Many investors use Backflip to help them analyze what their renovation budget should be in order to meet or exceed their goals. Once you have your budget, make it a priority to stick to it – that includes not only the home renovation costs, but your timeline as well. The faster you can complete a reno the better, as the longer you hold onto a property, the smaller your overall returns become.