The fix and flip loans approach to real estate investing has the potential to be a financially rewarding enterprise and enables you to contribute towards the revitalization of economically distressed communities. But in a competitive real estate market, it is essential that you come up with ways to give your fix and flip project an edge on other properties on the market in order to get it on and off the market in the shortest timeframe as possible. Doing so will optimize your return on investment and will allow you to get a fast start on your next income-generating endeavour. While simple touches like new siding and a fresh coat of paint are good steps towards revamping a home for the market, what else can you add to your fix and flip to give it that “wow” factor when it comes to catching the attention of potential homebuyers in the area?
The following are key additions that will increase the property value of your fix and flip property and give you a leg up on your competition.
Smart Home Tech
A classy addition that is popular in today’s technologically-driven world is smart home features. These devices enable homeowners to keep track of their energy usage, monitor their security system, control their temperature settings and so much more with just the click of a button. Nest, for instance, programs their thermostats to adapt your preferences and implement energy-saving steps based on your profile. You can also incorporate technology in the bathroom as well. Touchless water faucets are all the rage now especially for families that have children because they’re clean and easy to maintain.
Real Estate Investors attempting to sell your fix and flip project, these types of modern touches will catch the eye of young, tech-savvy home buyers and increase the price tag of your home with minimal effort a win-win situation when it comes to getting your property resold at a premium price point. Doing so will positively impact your bottom line and reduce the time and effort it takes when it comes to staging and showing the property.
High-End Appliances
Another big value add that you can implement into your fix and flip project are high-quality appliances. Although some homes may be staged with these appliances, incorporating them into part of the asking price is a huge selling point for potential buyers. Sought-after appliances such as stainless-steel kitchen finishes, washer and dryer units and digital monitors collectively upgrade the aesthetic appeal of the house and add value to the property.
You can implement cost-saving features that are also stylish. Swapping out inefficient toilets, faucets and shower heads for the originals go a long way in water conservation. A low-flush toilet uses 20% less water than a traditional toilet, and water saving shower heads can help homeowners save nearly 3,000 gallons of water annually. These classy and thoughtful touches will draw in house hunters that are looking for elegant, unique style points and set your fix and flip property apart from the countless other run-of-the-mill homes on the market that you will be competing against.
De-Clutter The House
Okay, so this isn’t really an addition per-se, but make sure to focus on neutral design elements that will appeal to the largest percentage of your target market. Nothing turns potential homebuyers off faster than an interior design that doesn’t exactly mesh up with their personal style. Be mindful that you aren’t unintentionally imposing your own preferences when it comes to staging and renovating the property. To this end, try to incorporate soft, neutral colors for the majority of the finishes there is always room to add in brighter colors and novel materials as accents for the purpose of drawing attention to and highlighting certain focal points that show off all of your hard work.
Lighting Fixtures
When attempting to make a decent profit on your real estate investment, one of the most impactful changes you can make to your fix and flip property is updating the light fixtures. Replacing old lighting with modern fixtures can instantly modernize a space, making it more attractive to potential buyers. From statement pieces in the entryway to small sconces in the bathrooms, there are many ways to update your light fixtures that will provide a big impact.
Make sure to keep up with current trends when selecting lighting for your fix and flip property. This will ensure that prospective buyers are impressed by the high-end pieces throughout the home, which can help sell the property at a higher price point. In addition to style, consider energy efficiency when selecting light fixtures. LED fixtures tend to be more cost-effective and energy efficient than traditional bulbs, making them a great way to add value to your property which could lead to a better sale price.
Square Footage
To increase the value on your fix and flip property, square footage is one of the most important factors but can also be one the biggest expenses. However, Increasing the square foot of a property can drastically improve its market value. This can be achieved in a variety of ways, such as adding rooms, building additional floors, or even extending existing rooms.
Adding extra bedrooms is one way to increase the square footage of a property. This is a great way to make the home more attractive to a larger variety of buyers, as more bedrooms will typically accommodate larger families. Extending existing rooms can also add square footage and help create an open concept feel. If you have the space and budget, consider adding on an extra floor or even an outdoor living area for extra value.
Structural Repairs
Structural repairs are a must for anyone considering an investment property. These types of repairs are important because they can help increase the value of the property and ultimately make it more attractive to potential buyers.
Structural repairs include repairing or replacing any part of the building’s structure that is broken, worn out, or otherwise compromised. This includes things like repairing damaged foundation, walls , or roofs, and replacing windows and doors. Structural repairs are important because they help maintain the integrity of the building and can even reduce insurance costs.These types of repairs can also help increase the curb appeal of the property, making it more attractive to potential buyers.
Landscaping
Landscaping is an important part of any fix and flip property project. It not only enhances the look of the exterior, but also increases the value which can lead to better purchase price. Working on the landscaping around a distressed property can increase the curb appeal.
The first step in landscaping is to assess the existing condition of the yard. Are there trees or bushes that need to be trimmed? Is there a lot of debris or overgrowth that needs to be cleaned up ? Are there any areas that are overly shady or sunny?
Once you’ve assessed the existing condition of the yard, it’s time to start thinking about how to make it more attractive. Consider adding trees, shrubs, and flowers to add color and texture. Create a plan for your landscaping design and choose plants that are appropriate for your climate. Think about installing low-maintenance hardscaping features like walkways, patios, and walls to add interest and value to your property.
Cosmetic Fixes
Cosmetic fixes are one of the most cost effective improvements to increase the value of a fix and flip property. These relatively inexpensive and easy fixes can make a huge difference in the home’s overall value. So, when it comes time to sell, you’ll be able to command a much higher selling price for your home.
One of the most important cosmetic fixes is paint. A fresh coat of paint can make a world of difference and help boost the property’s curb appeal. Other important cosmetic fixes include replacing any outdated fixtures, refurbishing cabinets, and updating hardware.
These are all relatively simple and cost-effective improvements to increase value to your fix and flip property. By making these small improvements, you can increase the home’s market value and make it more attractive to potential buyers.
Bathroom Fixtures
When flipping a house, it’s important to focus on the details of each room to ensure you get the most return on investment. One of the rooms that can make a huge difference when it comes to increasing the value of your fix and flip property is the bathroom. Here are some quick cosmetic fixes you can do in order to add more value:
1. Replace outdated fixtures with modern and stylish ones.
2. Add new flooring, such as tile or wood, for a fresh look.
3. Refresh the grout in the shower and tub to give it a fresh look.
4. Replace old and outdated light fixtures with more modern and energy-efficient ones.
5. Upgrade the vanity and mirrors for a more luxurious feel.
Living Room Fixtures
Living room cosmetic fixes can be a great way to increase the value of your fix and flip property with the aim of a improved profit margin. Consider making small changes like painting the walls, replacing carpeting, and updating light fixtures. These subtle changes can help make a big difference in the overall look and feel of the room.
Painting is one of the easiest and least expensive ways to quickly update a living room. Choose a neutral paint color to keep the room feeling light and airy. If you want to make a bolder statement, consider an accent wall with a bright, vibrant color.
Replacing carpeting can also help give the living room a fresh new look. Choose a low-maintenance option like laminate flooring for easy maintenance or opt for luxurious hardwood floors if your budget allows.
Considerations when improving the value of your fix and flip property
For house flippers looking to increase the value of your fix and flip property, there are several important considerations you should take into account such as the cost of renovation. These will help ensure that you get the most out of your investment and maximize your profits.
Renovation cost of a fix and flip property
The cost of renovation for a fix and flip property can be a major factor in determining the profitability of the project. Renovations are often necessary to make a property more attractive and marketable, so it’s important to consider what improvements will bring in the greatest return on investment.If you’re unsure of cost then we recommend that you understand your financing options prior to undertaking a fix and flip project. One of these options can be a fix and flip loan.
Cost of paint for a fix and flip property
When it comes to increasing the value of a fix and flip property, one of the most cost-effective ways to do so is by freshening up with a new coat of paint. Paint can instantly make any space look brighter and more inviting, and can help make an impression on potential prospective buyers that may be willing to offer more for the property.
The cost of painting a fix and flip property depends on several factors, including the size of the space, the type of paint used, and any additional labor needed to complete the job. It’s important to budget for paint costs when planning your renovation project so that you don’t overspend.
Eco friendly substitutes for a fix and flip property
When it comes to flipping a property, it can be difficult to stand out in the market. One way to increase the value of your fix and flip property is by utilizing eco-friendly materials and substitutes. Investing in green renovations not only adds value to your home, but also helps reduce environmental footprints, making it attractive for buyers who are conscious of sustainability.
One way to add sustainable features to your fix and flip property is by using eco-friendly materials when remodeling. Using recycled materials, such as wood or metal, rather than buying new can be an effective way to reduce waste and save money. Additionally, you can add energy efficient appliances to reduce energy costs for future owners.
It’s also important to consider the long-term maintenance of a property when making eco-friendly renovations. For example, opt for low-maintenance materials that don’t require frequent replacement or repair. This will help to reduce ongoing costs and increase value over time.
Common mistakes when renovating fix and flip houses
When it comes to fixing and flipping a house, there are many aspects to consider if you want to increase the property’s value. One of the most important steps is making sure you don’t make costly mistakes during the renovation process. It can be easy to overlook small details or go over budget on projects, so here are some common renovation mistakes for fix and flip houses that you should avoid.
1. Not having a plan: It’s important to have a clear plan for your fix and flip property, including a detailed budget and timeline. Without a plan, it’s easy to get overwhelmed or lose sight of the big picture. If you haven’t flipped a house before then you should become familiar with the house-flipping process by reading our beginners guide to house flipping.
2. Underestimating costs: Many house flipping projects end up costing more than originally anticipated due to unforeseen problems, hidden, unexpected or additional costs. This also included unexpected repairs. Make sure to factor in a contingency budget for any unexpected expenses.
3. Skipping the inspection: An inspection can help spot any potential problems that may be costly to repair in the future. It’s important to make sure everything is up to code before putting your property on the market.
4. Ignoring curb appeal: Curb appeal matters when it comes to fix and flip properties. Make sure to spruce up the exterior of your property with landscaping, paint, or other improvements to make it more attractive for potential buyers.
By following these tips, you can ensure that your fix and flip property renovation project will be a success. With careful planning and smart investments, you can improve the value of your fix and flip property and increase its Return On Investment.
