The most foundational piece of knowledge I teach in real estate is this: you make money when you buy, not when you sell! If you are purchasing investment properties, I sure hope you are following my tips on finding bargain properties with value. Once you have that property, you need to fix it up.
You must impress people within the first few seconds of entering your property, or you will lose them. This applies whether you are selling a house, or renting it out. The higher value your property has, and the more you play it up, the more money you will get towards your monthly positive cash flow. Today, I’m going to share with you some quick fixes you can make to add tremendous value to your properties and impress your potential buyer or renter.
5 Ways to Add Property Value
1.) Freshen Up with Paint
One of the most powerful ways to impress a buyer is with paint. This goes for the interior and exterior because it sets the feel for the house. Whether you are going for modern, rustic farmhouse, or eclectic and vintage, paint is the first piece of the puzzle. I suggest you come up with a color scheme for the house and utilize the colors throughout. This will provide a cohesive, consistent feel.
To create curb appeal, I suggest you paint the trim, front door, shutters and garage door a contrasting color that will make it pop. On the inside, accent walls add a fresh look, and buyers will be able to envision themselves creating a home in your house.
2.) Update Appliances
This can get expensive, depending on the house you bought. I suggest crunching the numbers to see if you can afford newer appliances within your budget and still make positive cash flow. If you find you will get a lot more for the house based on this increased value, go for it. If you can’t, work on smaller projects like cabinets.
Unless they are completely torn up, I repair, paint or stain the cabinets. This can make a huge difference by itself. Go look at the model homes for sale, and you will see trends of cabinet colors, shapes of handles, and overall color schemes that are popular. I also suggest you run the numbers on countertops, sinks, and faucets. Again, if you will be able to get a lot more out of your property by updating these appliances, do it!
3.) Focus on Floors
When choosing paint, we determined the color palette for the property. You want to get floors that match that, or all your effort could be in vain. Depending on the property you get, you may have to replace the floors completely. Focus on floors that are right for the environment you are in.
I have noticed that many humid places don’t have carpets, which is probably because they can get a lot dirtier and musty there. In that case, look for some really good tile or wood flooring to impress your potential buyer or renter. This will drive up the value of what you can ask for. If you don’t have the space in your budget to replace floors, then deep clean them!
4.) Stage the Furniture
Some people stage furniture, and some people sell empty houses. I am not a staging expert, but I think this can be an important step. In my experience, this gets the buyer thinking about how they would design the house, how their couch would fit, hook line and sinker.
Again, go back to the color scheme of the house. You want to add pops of color while keeping with the theme of the house. You can use your furniture if you’re selling, or rent it from some companies. Ask your friends if they have any furniture they wish to get rid off. There are many cost-effective ways to stage furniture to impress potential tenants or buyers.
5.) Add Accent Accessories
Finally, if you are staging a property, accessories are key. Seemingly small things like pillow covers or greenery can really change the look and feel of a property. I am going to say this again: create a color palette, determine a theme for your home, and play it up.
Add some candles or diffusers for a nice smell. Display things on the coffee table, and don’t be afraid to purchase some covers for furniture that doesn’t quite fit. The goal here is to accent or play up, the value of the home. Highlight the great aspects of the property, and you will have buyers lining up to purchase or rent your property.
I hope this post helped you see the importance of impressing potential buyers or renters, and the ease with which you can do it. One of my colleagues, Karen Conrad, is a home staging expert! She will be teaching at my Real Estate workshop in April, so if you are interested in learning more, come learn from her!
Take some time to think about how you could add value to your property. What are some of your quick fixes?