Flipping homes can be a very lucrative real estate venture, but only when you stay focused on the renovations and improvements that have the most value to potential buyers. Focusing on these upgrades will maximize the return on your investment. You can never account for everything that will happen while you’re transforming a property with renovations and upgrades, but there are some strategic upgrades and improvements that tend to lend higher returns. By focusing on these 7 upgrades that matter most to buyers (motivating them to pay a higher price on the property when it’s finished) you can set yourself up for a successful flip.
1. Take Care of the Non-Cosmetic Issues First and Foremost
While you absolutely want to make a home look appealing and bump up the curb appeal in a flip, you must take care of the non-cosmetic issues first. If a home isn’t functional or comfortable, then cosmetic changes alone won’t sell the home. If there are any insect or rodent infestations, take care of those promptly. You should also make sure the home has adequate heating and cooling systems in place so that the new homeowner is safe and comfortable. While these investments aren’t the ones a potential homeowner will see right away, they’re ones that are very important.
2. Freshen Up the Home Exterior with New Siding
If the exterior of your flipper is worn and faded (or painted an obtrusive color), then it’s a great idea to freshen up the exterior. Siding is a cost-effective way to make the home look new and sleek, and you should stick to more neutral colors that will have mass appeal across a large pool of buyers. You can always add pops of colors in other places to give the home style and character.
3. Upgrade the Doors (Both Exterior and Interior)
Upgraded doors can make a huge difference in the look and feel of a home, and these upgrades can make a huge impression on buyers without putting a substantial strain on your budget. You can add that pop of color with a new front door, or simply paint the front door to coordinate with siding if it’s still in good shape, but just dated and dingy. Replacing the interior doors is also a good move that will impress buyers and make the home feel top class. If the flip you buy has old, hollow doors that don’t latch properly and are too thin to muffle noise, the potential buyers are going to notice that as they’re walking through the home. Doors are a good way to make a subtle impression in an upgraded home.
4. Replace Worn Carpets or Dingy Flooring with Laminate Hardwood
Flooring is something that your potential buyers are going to notice the moment they walk in the door. If the home has old carpets or dinged up linoleum, it’s going to turn away buyers quickly. Laminate hardwood flooring is inexpensive, beautiful, and very durable which makes it a great option in a flip. It makes a terrific impression and will add value to the home instantly.
5. Paint with Space Creation in Mind
Freshening up the interior of a flip with new paint is another great way to transform the look and flow of the home. Choose colors with mass appeal and most importantly, think of creating space with colors and paint schemes. Light colors can help open up smaller spaces, creating the illusion of more space and air. Darker colors may make rooms feel smaller, cramped, and devoid of light.
6. Remember, Kitchens and Bathrooms Sell Homes
Bathrooms and kitchens have a huge impact on a home and can certainly drive a higher selling point when upgraded. These projects can get very expensive, so you should know your market and your buyers before choosing your upgrades. You can give a bathroom a whole new look with upgraded fixtures and vanities, which you can do easily and beautifully on a budget. In the kitchen, make sure you don’t immediately demo the cabinets or toss them out. Check them to see if they’re solid and functional, and then transform them with paint and upgraded pulls and handles for a whole new look without the expense of brand-new cabinets.
7. Ramp up the Curb Appeal with Landscaping
When a potential buyer first pulls up to a home, they’re going to form an impression immediately. If it’s not a good one, it can be hard to land a buyer no matter how nice the upgrades inside the home may be. You should clean up the yard, mow the lawn, plant some attractive shrubs and flowers, and add any landscaping or yard decorations that will make the home wow the buyers the moment they pull up. First Bridge Lending has extensive experience in the flipper real estate investment market. We’re local to California and understand how the market is trending where you’re looking to buy. We can meet with you in person, attend property visits, and advise you on the specifics of the area where you’re looking to buy and renovate. For more information on flipper real estate investments, contact First Bridge Lending directly by calling 415-248-1167.