At its core, house flipping can best be defined as the practice of increasing a property’s value in order to sell the home for a profit. But with that in mind, it’s important to note that not all home improvement projects are created equal.
Although a listing that boasts beautiful features is sure to garner interest from buyers, successful investors always make sure to focus on upgrades that have a direct impact on overall property value.
So, before you spend any precious time or money on superficial improvements, consider the projects listed below so you can increase the home’s actual worth.
How To Increase Property Value For A Profitable Flip
1. Install Hardwood Floors
According to a 2017 article published on Realtor.com, the average return on investment (ROI) for installing hardwood floors ranges between a whopping 70-80%.
That’s because, unlike so many other interior design elements, hardwood floors are a timeless feature that enhance the look of any property—not to mention the fact that genuine wood is durable, sturdy, and always in high demand.
2. Add Energy-Efficient Appliances
Most of the properties worth flipping are outdated homes with outdated appliances. Even when those appliances are still functional, they tend to use more energy than necessary, ultimately driving up utility costs.
Today’s savvy buyers just aren’t willing to offer the full asking price for a home that doesn’t operate efficiently.
If your budget allows, consider replacing all of the home’s major appliances (i.e., the stove, refrigerator, dishwasher, washer, and dryer) with newer, energy-saving models.
Buyers are much more likely to feel like they’re getting a deal when they see the property has been remodeled with their best long-term interests in mind.
3. Install An Additional Bathroom Or Transform A Half-Bath Into A Full
Buyers will always be willing to pay more for homes with more than one full bathroom—especially those with young and growing families.
Depending on the neighborhood demographics and the home’s overall square footage, having an additional full bathroom can be a priceless investment in itself.
4. Install A Home Security System
While it’s not necessary to pay for security monitoring services while you’re remodeling, having the proper equipment installed prior to selling leaves a strong impression on buyers.
Whether you choose to install high-tech video surveillance or a more simplified home alarm is up to you, but having some type of security in place creates an added benefit buyers are sure to appreciate.
Remember, home insurance providers usually offer discounted premiums to homeowners who invest in surveillance. So, aside from providing your buyers with peace of mind, having security features in place allows for lowered living expenses.
5. Add Energy-Efficient Heating And Central Air Conditioning
Again, any improvements you can make to help your buyer save money will far outweigh cosmetic upgrades, at least in terms of adding tangible value to the home.
Before you begin your renovations, it’s always helpful to hire a licensed HVAC professional to inspect the home’s heating and air conditioning systems. The older the property, the more likely you can find opportunities to increase efficiency to further drive down monthly utility costs for your future buyer.
6. Add Energy-Efficient Doors And Windows
Of course, upgrading the heating and air conditioning is a wasted effort if the home’s doors and windows let in outdoor air.
Energy-saving windows and doors are not only an invaluable feature, but a fairly costly investment that your buyers will be grateful you’ve already included.
Lastly, always make sure the Realtor who represents your listings knows exactly how much work went into the home, so your online listing accurately reflects the full renovation.
Increase Your Earnings When You Invest In Affordable Property Through CastleRock
Our nationwide inventory of low-cost homes for sale is constantly being updated with new properties ideal for investors. Be sure to browse our current selection online to find your next profitable flip, and contact our friendly staff today for more information about our listings.