How To Renovate A House You Plan To Resell Quickly
House flipping can be a highly profitable way of making large amounts of money quickly. However, if you go about it the wrong way, you will invariably find it more difficult than you imagined and you may not even make a decent profit.
Here are 3 steps you should take to be successful at it:
· First, do your research. Buy the right property at the right price.
· Second, work with a mentor to learn the right skill sets. It’s the fastest way to avoid making expensive mistakes.
· Third, be prepared to spend time, money, and patience to get all the right things done.
If you’re thinking about renovating a house with an eye towards reselling quickly – that is, flipping it—what should you do? Additionally, what should you not waste time and money on because it will either be too time-consuming, expensive, or irrelevant?
What You Should Do?
1. Install Monitored Security
One way to impress new home buyers is to have a monitored home security in place. Choose a basic plan from a reputable home security company that the buyer can take over. Show the buyer all the features of the home security system as they walk through the house. For instance, point out the surveillance cameras and show them how it’s possible to view video clips of certain events – like children arriving home from school or the antics of a naughty pet when everyone leaves the house. Once they understand all the bells and whistles of a monitored security system that’s already in place, you will have instantly increased the value of the property for them for less than $50 a month.
2. Renovate the Kitchen
A quick way to win the new buyer over is to have a kitchen that conjures up all the images of a comfortable home. However, the money you spend on kitchen renovation should be in line with the price of your home. You don’t want to raise the house price significantly to pay for the cost of a showpiece kitchen. On the other hand, a great looking kitchen might be the perfect way to sell the house quickly. So you have a balanced perspective on how much you want to spend to renovate the kitchen. Depending on the type of house and neighborhood, kitchen remodeling can range from under $10,000 to close to $100,000.
Here are a few things you can do to jazz up a worn-out looking kitchen:
· Add a fresh coat of paint.
· Get Energy Star rated appliances.
· Retile the floor if the current one is worn out.
· Upgrade cabinets and countertops.
2. Add an Extra Bathroom
Redo the master bath—adding features that can give it a significant facelift. If there is extra space in the house, you might even consider adding a small bathroom. It doesn’t have to be extravagant, and might simply consist of a sink and toilet.
3. Repurpose a Room
It can be very expensive to add another room, but if the house has an extra room, you can repurpose it. For instance, you could convert a mudroom into a storage room or an attic into a guest bedroom. Naturally, you don’t need to furnish the room but merely suggest to the buyer how the room could be used. Create a layout that would allow the buyer to use the room in any way they like. For instance, the attic should be big enough to fit in a bed and a dressing table, but, of course, the buyer might see it as the perfect place for a home office.
4. Add an Attractive Deck
Adding a deck can considerably improve the desirability of a home. The cost will depend on the size of the deck and features like built-in seating or built-in flower pots.
Landscaping can make the house look instantly more attractive when buyers walk up to the front door. HGTV explains: “Potential home buyers form their first impression of a home from its curb appeal. Yet often a home’s outdoor landscaping is overlooked, or underdone, in the preparation for the sales process. An attractive and well-maintained landscape can add as much as 10 percent to the value of your home.”
What You Should Not Do
Obviously, the more you renovate, the better the house will look, but you have to balance the appeal factor with your ROI. You don’t want to spend tens of thousands of dollars on things that will not increase the resale value of the house. Some extravagant things to add are a swimming pool, a jacuzzi, a whirlpool bath, a sunroom, high-end landscaping, deluxe kitchens, extra rooms, a new roof, and bigger garages.
However, if the house does have some of these features already but they are in need of repair, then it might not be too expensive to restore them. Some restoration, of course, might be necessary. If the garage is too small to fit even a mid-sized car, then it’s a good idea to extend it, and if the roof is beginning to become problematic, you should have it redone.
Get a Second Opinion
It’s easy to get carried away when renovating a house for sale and you can easily overspend. So it’s wise to get a second opinion. Contrast your vision of how to upgrade the house with ideas from people who aren’t emotionally invested in the project.