To make a killer sale on an investment property is highly correlated with the state and condition of the property, on the inside and out.
Real estate investments are profitable investments if they appreciate in value, meaning the property increases in value over time and sells for a lot more. To capitalize on the best profitable real estate investments, investors hone in on good neighborhoods in prime locations with good nearby amenities i.e. parks, transportation facilities, entertainment venue, shops etc. Without a good location, the property won’t attract prospective buyers. And the opposite case holds true; a good real estate property in a rundown neighborhood won’t give you a big profit margin on the house. This blog post walks you through the best tactics to increase the value of your home to give homeowners and real estate investors the leverage to sell at their own asking price.
The Best Tips to Increase the Value of Your Investment Property
Investing in a property is a big decision, so if you are looking to sell your investment property now or down the line, make sure to keep in mind the following tips. It goes without saying that regular maintenance and upkeep is the best tip to keep the value of your investment property at a premium.
1. Identify the work that will make a real difference
It is deemed ineffective to renovate your investment property in one go; this method will not only overwhelm you, but it will burn a big hole in your pocket. Savvy real estate investors maximize their financial rewards at minimum cost. This is a great strategy to capitalize on your investment property without spending too much out of your own pocket. So the first tip is to prioritize and identify the renovations that will make the most difference in your house and drastically enhance the value of your investment property for prospective buyers.
2. Find the “Wow Factor” to enhance the value of your investment property
This goes in hand with the first tip; to identify the work that will put your investment property on the map, make sure to add a ‘wow factor’ to make your property stand out and give you the leverage to set your own price.
This is our second tip: think of the renovations that will generate you the highest return on investment; this could be a new kitchen countertop, flooring, bathroom, painting your wall etc.
3. Prioritize to avoid paying too much at once
We cannot say this enough! Be very deliberate in the way you plan your renovations and manage your costs. Prioritize the work to keep your costs to a minimum and make sure renovation areas which will reap you the best ROI and make the most difference in the house are done first. If you have a specific segment of prospective buyers you want to target, make sure to renovate accordingly to their tastes and preferences. This strategy will not only help you prioritize but it will save you time and money.
4. Skip less profitable renovations
Again, think of renovations that will reap you the highest ROI i.e. making small changes in the house may not make a real difference in the value of your investment property over time. But real change, big or small, must give that wow factor and give you the competitive advantage in the long run.
5. Consistent maintenance is key
The best tip of all is keeping up with your home renovations and not postponing or pushing back on enhancing your investment property. Big change starts with small steps. You do not need to bend over backward to transform your investment property overnight. The idea is to achieve small successes to win big and make a big profit margin on the house.
6. Plan your remodel
Before taking on your next renovations, take the time to plan them well to reap the maximum benefits and for the least cost. If you cannot do this on your own, we recommend you hire a professional to help you out.
More Tips and Tricks for the Best ROI
7. Take one room at a time.
Start with the room that will be important to your prospective buyers i.e. kitchen, bathroom.
8. Weigh the benefits of upgrading vs selling.
Conduct cost/benefit analysis to reap the highest economic benefit of your decision.
9. Start with your kitchen.
Your kitchen should have the Wowza factor; it is usually the first room prospective buyers look at and will set the overall impression of your investment property.
10. Beautify your bathroom.
Another important room to count into your renovation plan.
11. Spend an hour with a pro.
Ask a realtor or interior designer to check out your home and give you sound advice.
These renovation tips will help real estate investors and homeowners to increase the value of their investments down the line and reap big financial rewards. As a business owner and investor, you have the autonomy over your profit quota in real estate investing; this entails keeping your costs to a minimum and prioritizing maintenance and upkeep to avoid major downfalls in house repairs and costs. Without proper planning and costs management, real estate investors won’t reap the maximum benefits of real estate investing.
Don’t forget that comparative market analysis is key to finding the after-repair value of an investment property. Mashvisor can help! To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.
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