Selling your house is an emotional process, particularly if you have lived there for a number of years. Where a potential buyer sees an old toilet, you see images of potty training your first child; where a potential buyer sees a stain on the carpet, you see the last physical sign of your awesome birthday party — and most importantly, where a potential buyer sees a house, you see a home.
The key to smart real estate decisions regarding your home is to look at it like a house. Home is where the heart is, and your house is where most of your life savings are. It’s hard, but try not to get too emotionally attached.
In my experience flipping homes, I have seen a lot of expensive piecemeal renovations attempted by homeowners that really don’t add a lot of value to the resale number. Brand new marble countertops are a great feature to any house, but they don’t get you much in resale if the cabinets are old and grimy.
Consistency is key in any renovation, and if your house is older, it could take a decent chunk of change to get everything up to that consistent, quality level of finish. There are, however, a number of smaller, less expensive things you can do that will help your home sell more quickly and give it a cleaner feel.
How to Estimate Rehab Costs!
Estimating rehab costs accurately can make or break your real estate business, and it takes years of experience for even the best rehabbers to master the art. However, you can expose yourself to less risk and get more accurate with your projections by learning how the pros think when estimating construction costs.
The Top 4 Home Renovations that Ensure Higher Resale Value
Fresh carpet is a great look and is also relatively inexpensive.
You need to take the perspective of eliminating as many grievances as possible. A gnarly spot on the ground is a pretty legitimate grievance and also raises the question: “What the hell happened there, and what else is wrong?”
Pay a landscaper to come in and weed your yard, cut your grass and throw down some nice bark, if appropriate. Don’t cheese on the bark and do it yourself — it will look silly and give the house a disingenuous vibe.
If the inside of your house is pretty nice, then putting down some new sod may even be worth it.
3. Grout and Caulk the Kitchen and Bathrooms
Sounds like a minor thing, but it can really have a nice effect. It also takes out the grungy, worn look that even nice bathrooms develop over time.
It makes the buyer think that they are buying a nice, clean home, which is a good feeling. Grout can be labor intensive and thus seem a bit expensive. Do it anyway — at least if you want your home to sell for a good price.
The number one way to improve your resale value is to paint the interior and exterior of your house. Not only does it smell great on the inside, but it also gives the house a “new” feel, which is a great impression to make on all buyers.
I know: your house is your home — and has a ton of memories. But if you are going to sell it anyway, then you might as well do the aforementioned four things and make more money on the sale.
What renovation items do you look for in a home? Have you had success flipping? If so, what renovation items do you think brought you back the biggest bang for your buck?
Be sure to leave me a comment below!