You take pride in being the owner of an investment property, but are you getting the most bang for your buck—or, the greatest return on your investment?
The reality is that sprucing up your single-family property can quickly add value to it. That’s exactly why recent research shows that nearly 60% of people queried said they would probably or definitely undergo home renovations or improvement projects within the next 12 months.
Of course, as you explore how to increase property value, you may be asking yourself, “What improvement projects will yield the best results for me?” Here’s a rundown on key improvements you should make to increase property value.
This is one of the smartest moves you can make relatively quickly. That’s because the outside is a potential buyer’s first impression of the home. Unfortunately, it’s one of the areas that many investors neglect as they focus on changes to the interior.
What Exterior Projects Can You Complete to Increase Value?
Perhaps your single-family home could use an extra coat of paint, or maybe you need to replace that dilapidated fence. In addition, your driveway might be due for power washing, and you may need to groom some shrubs and trees or plant some flowers.
It’s also a wise idea to make sure that your patio space or deck is functional if you’d like to increase property value. Adding extra lighting or even a small table and setting are easy ways of accomplishing this. Getting rid of overgrown weeds from your yard, painting and weather-stripping your front door, and ensuring that your storage outside is usable and clean are also great steps that may help you to improve the value.
When it comes to your single-family home’s interior, your kitchen should be one of your first priorities if you’re wondering how to increase property value. According to research, a minor kitchen remodel (of no more than $15,000) may recoup nearly 93% of its cost at resale!
Kitchen Projects to Focus On
First, upgrading your countertops can quickly make your kitchen more valuable, thus making it easier for you to sell your single-family home or demand a higher rent amount. Quartz and cement are especially popular in higher-end housing markets, but granite is also a great option. The most important thing is that your new countertop is stylish, functional, and durable.
You could also add some fresh paint or stain to your cabinets to make them stand out and look brand new. However, if your old cabinets are made of particle board, you might want to upgrade them to something more functional and modern if you want to really increase property value.
You can’t go wrong investing in better light fixtures and faucets for the kitchen and bathroom, as well as adding ceiling fans. You may also want to add new locks, door handles, or even window blinds, with faux wood blinds being especially popular for adding a lavish touch to any space.
Upgrading your fixtures will make your single-family home appear more polished. It’ll also increase the durability of the items in your home that experience a lot of wear and tear over time. If your upgrade is professionally done, you can sell your property or fill it with renters more quickly, thus maximizing your real estate investment income.
If you are planning to rent out or sell your home after you increase the property value, be sure to upgrade your appliances as well. This is critical because appliances are some of the first items that renters and home buyers look at when entering potential new homes.
If your kitchen features mismatched appliances, or if your appliances aren’t functioning at their optimal level, you likely won’t get top dollar for your property when you sell it. This is why you should purchase an appliance package with matching appliances and make sure that it comes with a warranty.
Finally, don’t overlook your flooring when trying to figure out how to increase property value. A general rule of thumb is that you should install wood flooring versus carpet, as it can add a more sophisticated touch to your single-family property. Plus, if you’re renting, you may have to change out your carpet every other tenant, as a single juice or bleach stain can permanently ruin it. Constantly replacing your carpet can get expensive and, thus, negatively impact your rate of return each year.
More on Wood Flooring
Wood flooring is a broad category that includes not only hardwood but also laminate, plank/faux wood, bamboo, and laminate. A major benefit of this type of flooring, besides its appearance, is that it is better health wise for those who suffer from carpet allergies.
Still, some renters and home buyers prefer to have carpet in the children’s bedrooms, or during the winter months. Thus, it may behoove you to install carpet in all bedrooms and then use flooring throughout the rest of the single-family property’s living spaces. Also, if you have linoleum or vinyl in your kitchen or bathroom, you may want to replace this lower-quality flooring with classier travertine or ceramic tile, which renters and buyers generally prefer.
If you would like to increase the return on your investment in a single-family property, completing the above projects is a great start. Apply these tips to your fix-and-flip and wholesale deals!
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.