When looking to make money during renovations the first step is always to do localized market research on both home prices in the area, and on how to maximize the Return on Investment (ROI). This allows decisions to be made based on the local needs and what the homeowners are willing to do. Be sure not to price the renovation costs outside of the local market. While the Real Estate market is always fluctuating, there are a few renovation tips that seem to stand true.
Maintenance and Repairs Essentials
First and foremost, look at the potential repairs. Whether that is roofing, appliances, or windows, these fixes will reduce the amount of things a buyer will feel are required to repair upon moving in. Many rooms in the house may only need small fixes, such as updated hardware or fixtures.
Kitchens and Bathrooms
The most common areas looked at by buyers are high traffic areas such as the kitchen and bathrooms. When renovating these, there are a few things to keep in mind, including the local market statistics and design trends. Keep your colour choices neutral for your wall paint, countertops, flooring, etc. When choosing your materials make sure to spend enough to create a WOW factor, but don’t choose the most expensive materials or you won’t get your ROI.
Open Up the Inside
Opening up space in the house is a great way to create flow. Open concept homes are the trend right now for a reason. Creating space can be as easy as taking down a non-structural wall and installing a kitchen island.
Lighting is a great way to liven up the space and creates a sense of warmth in a room. Real Estate photographers turn on lights when shooting the inside of house, even if it’s a bright day, because it adds that sense of warmth. Adding a sun tube is a great way to get sunlight into a room, and less expensive then installing a skylight. Sun tubes allow sunlight into a home through reflective tubes linked to transparent globe on the roof.
Replacing/updating the front door is a great money making renovation. There is the only one chance for a first impression. Also, a newer door adds to the energy efficiency of the home which is another great appeal to buyers.
Flooring is a great investment because it is something that doesn’t require a ton of money to be spent, and the return is nearly double of what you put in. The floor does not necessarily need to be entirely replaced either. Simply repairing broken tile, damaged floor boards, or getting rid of the old carpeting is a great way to increase the appeal of a home.
While doing renovations, it is important to keep energy efficiency in mind. This is an increasingly popular trend that buyers are looking for from their features and appliances. For example, the energy savings with having new heating and A/C units as apposed to dated models can be quite large. This makes your house more desirable and current.
Another example would be to install green energy generation sources. Solar power is continually becoming more efficient, as well as much more attainable. For $5,500 there is a grid-tie solar kit that would supply enough average monthly energy to run the dryer and power all the lights in the home.
Painting – Keep it Neutral
One thing that should always be done when getting ready to put a home on the market is painting. Painting is a great way to make a room more crisp and fresh. The other thing to keep in mind is to keep the colours neutral. Having dark tones or bright colours can be off-putting to buyers, or even the buying agent. Neutral colours allow the buyer to imagine themselves, and their things, in that space.
Together all of these tips can help create profitable renovations for immediate or future sale!