I always say that you make money when you buy, not when you sell. The key to being a great real estate investor is to be able to see potential in a property, and potential disasters. I have had many properties that, by adding simple value, have increased the amount of rent I was able to get each month. I have also increased the selling price of many properties, doubling what I paid for it.
You’re looking for properties that can be “lipsticked”. This means you only have to make cosmetic repairs to add value.
How to Add Value to Properties
This is one of the biggest keys to adding value. Either have an interior decorator or yourself come up with one-to-three color schemes and use them in just about every house.
I encourage you to take a look at model houses. This will give you a good idea of color schemes that are popular and attracting buyers.
Flooring can either make or break your property. Dirty carpets automatically bring down the value and will scare away buyers. Either replace your old carpet with new or replace it completely with hardwood floors.
Trends come and go, so again, go look at model properties to see what floors are selling. Make sure they also match the color scheme that we talked about while painting. You don’t want to have a red wall and a blue carpet.
First impressions are everything, so you want the outside of your property looking great. The first thing you want to do is to clear out overgrown bushes. Put in fresh, smaller bushes that make the house look new.
Flowers will add color, making the house look brighter and more alive. If needed, add new mulch, bark, or rock to give it a fresh look. This may seem obvious, but make sure the lawn is mowed!
These are often overlooked, but they can change the whole feel of the house. I was once renovating a higher-end property, and all I did was add in luxury fixtures. The first thing the buyer saw was the nice kitchen faucet.
Use your money where you get the best bang for your buck.
Finally, repainting or replacing cabinets can also renew the feeling of a house. Trends come and go, but cabinets can be more expensive to replace.
If possible, paint the ones that are currently in the property to make them look nicer. In some cases, you may need to replace them entirely. Make sure the style is timeless, so you won’t have to replace them every few years.
Whether you are fixing and flipping a property or buying and holding, it never hurts to add value. What are some ways you spruce up homes?