A great way to generate returns through real estate is by adding value to a home with renovations. Indeed there are many investors whose entire strategy is built on buying homes to renovate and quickly flip for a profit. There are all sorts of projects you can undertake increase the value of a home, but not every one of them will be the cost-effective. You’ll also have to make sure your renovations will have broad appeal while still transforming the look and feel of a home. If you want to get the most bang for your buck when renovating a property, here are some of the best areas to focus your attention on.
Generally, you will want to refurnish the rooms in a property that you’re planning to renovate. That’s because staging can help you receive more offers when it comes time to sell, and even net you a higher sale price. A 2021 article on the National Association of Realtors blog shows how staging is worth the investment: “A recent survey from the International Association of Home Staging Professionals shows that staging helps sell homes three to 30 times faster than the nonstaged competition. Further, staging can help increase the sale price by up to 20% on average.”
The first advice you’ll hear about renovating a property is to remodel the kitchen and bathrooms, and this is for good reason. A kitchen is often the heart of a home, and you can be sure residents will be spending lots of time there. Some of the easiest ways to update a kitchen include new hardware and cabinetry, and new appliances. Beyond that, you can look into replacing countertops and flooring, especially if the property has old laminate that’s well out of style. For bigger projects like these, you should measure their cost against the potential value they will add to a property to decide if it’s worth your time and money.
The main reason to update the bathrooms in a home is they tend to show their age more than any other rooms. The good news is, it should be easier to take on any projects since bathrooms tend to be smaller. Just like the kitchen, you should start with updating the hardware and sinks, as well as the toilets. If you want to take your renovations a step further, consider updating old showers/baths. The best way to breathe new life into a bathroom though, even if it may be costly, is to re-tile it.
Another great place to focus your attention is the living room. You can treat the living room as a tone setter, as the look and feel of this room will help bring your design decisions all together. Residents will likely be spending most of their time here, so you also want to make sure it will be a pleasant experience. A fresh coat of paint is a great starting point, but you should also look to replace flooring and furniture if either are becoming outdated.
The last rooms you will want to put some effort into are the bedrooms. Your goal when renovating these rooms is to create a warm, comfortable environment to help entice relaxation. You may need to repaint and spent some time decorating to achieve this goal. That also makes carpeting preferrable to hardwood when it comes to flooring. As with the living room, you should look to replace the furniture in these rooms so they can fit in with your general style direction.
You’ll be spending a lot of time renovating the interior of a home, but don’t forget that the outside is the first thing potential buyers will see. Paying some attention to it will help you sell your property quicker if you plan is to the flip it. Make sure to take care of the basics in terms of landscaping and try to bring up the curb appeal of the property. If you think your property could use a fresh coat of paint, or new siding to replace an older material, then consider investing in those upgrades as well.
Do you have a real estate project you would like to obtain financing for? RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. If you’re looking to acquire financing for a home flip, RCN Capital has competitive loan options available. Connect with us today to discuss your next real estate investment.