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TODAY’S BUYERS APPRECIATE EXTRA SPACE AND AN UP-TO-DATE LOOK. 13 Best ROI Updates for Flippers
by Luke Babich
good house flipper typically takes a subpar property and turns it into a highly desirable one, essentially turning a frog into a prince. Still, house flippers must walk a fine line between improving a property enough to attract buyers and keeping costs low enough to preserve their profits. The most effective way to maximize your profits is to track the return on investment of various home improvements and renovations, just as you would if you were projecting income from a rental. After all, if you spend $20,000 putting in a swimming pool and doing so only ups the sale price of the home by $10,000, you’ve lost money. Lose too much money on an unwise renovation and you may have to unload the property to a cash buyer. On the other hand, if you spend $500 painting the interior of your home, and it increases the value by $5,000, you’re on the right track. There are a lot of home improve- ments that offer a great ROI. Here are 13 renovations that will have buyers lining up to make an offer. 1. PAINTING A fresh coat of paint on the walls of a house is one of the easiest and most cost-effective improvements out there. Painting your home only costs as much as a few cans of A
paints, some brushes, and a few dropcloths. It’s a great option if you’re relying on unconventional financing for your renovation. A good paint job makes a home look brighter, cleaner, and newer. Depending on the size of your house, paint jobs can be completed, even by amateurs, in just a handful of days. Experts suggest going for softer, neutral colors such as light gray, beige, eggshell, or “greige.” White may seem like an obvious choice, but it can look very harsh. 2. BATHROOM REMODEL Along with kitchens, bathrooms are often a decisive factor in a home’s appeal. Prospective buyers base a lot of their feelings on a home’s modernity and overall aesthetic by looking at the bathrooms and kitchen, so you want them to look as sharp as possible. A practical bathroom remodel doesn’t mean tearing down walls and redoing the plumbing. A transformative remodel can focus on details like finishes—installing a new basin and taps, replacing a conventional showerhead with a rainfall showerhead, modernizing the lighting, and bringing the color scheme up to date.
3. LANDSCAPING You’ve probably heard the term “curb appeal” before. It describes the first impression your home makes on prospective buyers as they approach from the street. This first impression is crucial. Most buyers decide whether they like a home within a few seconds of laying eyes on it. Landscaping can have a massive impact on a home’s curb appeal, especially if it’s a distressed property or one that hasn’t been maintained. You want to walk a fine line between establishing neat, clean lines while avoiding the impression your yard is “high maintenance”—which can turn buyers off. Trim grass, trees, and hedges and remove any visual obstructions blocking your home’s façade. Consider putting in strategically placed flowers to brighten up the yard. 4. KITCHEN REMODEL Similar to the bathroom remodel, freshening up your kitchen can pay big dividends. An effective kitchen remodel doesn’t require a huge gut renovation. Instead, you can focus on cosmetic changes and updates— new, classy appliances (stainless steel is always admired), updated light fixtures, refinished cabinetry,
48 | think realty magazine :: september - october 2022
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