To make a house or a property easier to sell and more attractive to buyers, most home owners renovate or remodel the property. Renovations can be as small as adding an extra layer of paint or changing the doors of the cabinets, or it can be a full-scale renovation project like redesigning rooms or redecorating the living room. All of these renovations aim to improve the appearance of the house and get a higher price in the market.
But what should homeowners remember when renovating for profit?
- Chose improvements that are most popular with prospective buyers. Kitchens and bathrooms are at the top of the hit list. Kitchens can actually make or break the sale, so stop wasting time and update yours now. With kitchen upgrades, you will most likely get 85 percent of your money back and renovations can help eliminate a buyers negotiating points. There are several useful online guides which show you the return on any renovation you are considering.
- Keep your home in top shape. Homes that are not looked after deteriorate rapidly in value. A leaky roof, for example, can cause damage to your hardwood floors. Siding that is in bad shape can also lead to squirrels and other pests getting into your attic and causing further damage. Take care of your home not only because you are selling it, but because it is where you live.
- When the time comes to sell, put your maintenance operation into high gear. Painting the exterior, repairing the roof, changing the front door, landscaping and re-doing the gutters will ensure that buyers get a positive impression. A house that is in good condition will fetch a higher price in the real estate market.
- Rental suites are a big plus. Renovations that make it possible to derive rental income are generally big pluses for potential buyers. If home buyers know that they can get rental income out of the property, then you can sell your home faster.
- Avoid amateur renovation jobs. The “do it yourself” renovation market is all the rage in real estate right now. But if you put an addition on yourself, and the roof leaks, a prospective buyer won’t be impressed. If you can’t do a professional job yourself, hire somebody who can. A bad renovation job can break a sale, so if you need something renovated, repaired or replaced, it should be done by someone who has the necessary skills for that type of job.
- Invest in energy efficiency. With rising energy prices, you can be sure that the payoff from investments in insulation will give a return that keeps rising. More and more home buyers are looking for energy efficient houses so it will fetch a good price in the market. Some local governments are also offering tax reliefs for energy efficient renovations.
Whatever renovations you have in mind, remember that it should be planned out well. Make sure that your asking price can cover the expenses you spent for the remodeling, otherwise you’re going to be in the red.