Money doesn’t grow on trees.
That’s a fact. So when it comes to flipping houses, it pays to spend wisely. That means focusing on the renovations that will give you the most bang for your buck.
Make the most out of your repair budget by figuring out what your potential buyers value. It makes little sense to funnel money into, say, a home office while an outdated kitchen languishes.
But what are the biggest moneymakers when it comes to rehabbing a house?
According to the folks at HGTV, the top three home upgrades with the highest payoffs are:
Minor Bathroom Remodel—102% return, average investment $10,500
Who doesn’t appreciate a fresh, modern bathroom? With just a few supplies and a little elbow grease, you can transform a drab, dingy powder room into a gleaming show stopper. Sometimes all it takes is some new tile and fresh caulk to make a real difference. Or maybe you need to reglaze a worn out tub. Buyers like to see things that are shiny and ‘new’ but that doesn’t necessarily mean newly purchased.
Exterior Landscaping—100% return, average investment $3,500-$5,000
You know what they say, you don’t get a second chance to make a first impression. So, when it comes to selling a house, don’t underestimate the importance of curb appeal. We recommend putting some time and energy into designing a greenscape that pleases the eye of the discerning buyer. It may be just a matter of pulling out or pruning existing shrubbery and adding a few flats of colorful perennials and sod. Keep it simple!
Minor Kitchen Remodel—98.5% return, average investment $14,913
There’s a reason why partygoers always end up in the kitchen—it’s the heart of the home. And with everyone spending so much quality time there, it makes sense to give the kitchen some love. With a minor remodel, focus on aesthetics rather than major changes to the layout. Cabinet refacing and new appliances can breathe new life into a tired kitchen. If your comps support it, you may want to consider upgrading the countertops too—stone and marble are timeless.
General Tips
Whatever projects you choose, try to put yourself in your buyer’s shoes. Consider the neighborhood and your price point when deciding among finishes and appliance grades. Sometimes it’s the most inexpensive fix that makes the biggest impact. A new coat of paint can go a long way towards making an older home new again. And for a minimal investment, decorative crown molding and updated lighting can also transform a room from ‘meh’’ to ‘wow’.
Whether your property needs a few cosmetic upgrades or a major overhaul, Navigator Private Capital is in your corner. With years of hands-on experience, we can provide you with invaluable advice as you develop your Scope of Work and line up your financing. Reach out to us at 888.444.3160 or info@gonavcap.com to find out how we can help you make your next project a success.
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