House Flipping 101: Upgrades to Increase Your Property Value
House flipping has become common over the past few years. It involves buying a house and quickly reselling it. As a house flipper, you need to ensure that you sell this property at a higher price than the original buying price. That way, you will generate revenue. To ensure that you make more profit from your sale, you should upgrade your home. Several upgrades can be done to increase and add value to your property.
Add a Home Office to the House
Technological improvements have made it possible for people to work remotely. As a result, more people are working from home. The increase in remote workers has led to increased demand for houses with home offices. Therefore, as a house flipper, you need to consider converting a room to a home office. For instance, you can convert a walk-in closet into a home office. Adding such a room to a home can increase the home’s resale value by around $10,000. If the house does not have a walk-in closet and has a limited number of rooms, you can build a backyard accessory dwelling unit. The unit will be used as the home office, and it will probably increase the property’s value by around $47,000.
Upgrade the Roof
Many homeowners never think about new roofing when renovating their homes. However, it is one of the home upgrades that can increase your property’s resale value. According to research, new roofing can increase your home’s resale value by nearly $12,000. A new roof will also improve the overall appearance of your home, which, in turn, will attract more potential homebuyers.
You should ensure that you invest in good quality, durable and good-looking roofs such as specialty roofs. Specialty roofs are made from two asphalt layers fused. Therefore, they are durable and can add a layer of strength to your roofing system. According to Cenvar Roofing, “When a seller invests in a new roof prior to selling the home, they are likely to recoup between 60- 70% of their investment, and are more likely to receive full-priced offers on their home.”
Transform All the Unused Spaces in the House
Failing to use all the space in your home means that you are not utilizing your home to its full potential. Therefore, if you have any dead spaces in your house, you need to transform them. For instance, if you have an unused room in the home, convert it to a playroom, guest bedroom, separate suite, or a home office. You can also add cabinets to your loft space, which you can use for storage. Transforming these spaces can lead to a 20% increase in a home’s resale value. It will also make your house more appealing to potential buyers.
Upgrade Your Kitchen Space
Upgrading your kitchen space can significantly increase the overall value of your home. Depending on the kind of upgrades you do and the location of your home, you will recoup at least 50% of the renovation costs when you resell the property. To make the most out of this project, you should focus on upgrades to improve the kitchen’s functionality and appearance.
A rip-and-replace kitchen project can be a good starting point when renovating a kitchen. The project involves removing the old kitchen elements and replacing them with new modern amenities. For instance, if your kitchen cabinets are old, you should remove them and replace them with new modern cabinets. Other things that you need to replace include your stoves and electrical appliances.
You can also change the kitchen’s layout. When changing this layout, try to maximize the square footage and the kitchen’s functionality. That will increase your kitchen space and, in turn, will increase your home’s resale value.
Time to Increase Your Property Value
If you are a house flipper, you need to upgrade homes before selling them, as this will help you make more profits. Some of the home upgrade projects that will help you make more money include kitchen renovations, new roof installations, and bathroom renovations. Utilizing all the dead space in the home and building a home office will also increase the home’s resale value.
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