“Buy cheap, sell dear” has long been the motto of private property developers, and if you’ve ever considered flipping houses to supplement your income, it’s one of the most important things to remember.
But while understanding market trends is important to earning a profit off real estate investment, in the end property development comes down to buying properties that have not been optimized and then making concrete improvements that will render them more desirable.
Here are three of the most financially significant ways this can be done.
1. Install a New Roof
Not only is your roof one of the most essential features of your home, it is also one of the most expensive routine maintenance jobs you’ll need to undertake on your home. So it shouldn’t be surprising that the state of a house’s roof can have a big impact on its resale value.
This isn’t only because new homeowners might not want to start roofing a house they’ve just bought: it’s also due to the fact that the state of the roof is indicative of a lot of other factors. If a roof is in bad shape, here are a few other problems the house might have:
- Poor attic ventilation
- Water damage
- A leaking foundation
- Structural issues
While re-roofing a property just to re-sell it might not be the most economical choice, if you have a property you’re planning to sell in the coming years, it’s a good idea to be proactive about the roof. If it is reaching the end of its life, call a company like Professional Roofers to explore your repair and replacement options.
2. Convert the Cellar or Loft
One of the biggest factors determining the selling price of a property is the number of functional rooms it has. The larger the house, the more you can ask for you, and while adding extra rooms isn’t always possible, maximizing the retail value of the existing space is a great way to get value from a house.
Transforming unfinished cellars or storage lofts into new bedrooms, studies, or living areas can attract a greater range of potential buyers, and while such renovations might involve a substantial financial investment, with the right plan they can also result in a substantial increase in the overall value of the home.
3. Give it a Makeover
Substantial changes like expanding the living space or upgrading cellars and lofts can have a huge impact on the value of your property, but they are also quite time-consuming, and involve a substantial up-front capital investment. What if you don’t have the time or resources to make major changes, but still want to bump up a house’s appeal?
As real estate data has consistently shown, one of the best things a homeowner can do in the short term to improve the resale value of their properties is to improve curb appeal.
According to some experts, investments in the overall attractiveness of a property can increase its price by 7% or more when it comes time to sell.
Flipping houses can be an extremely rewarding job, but it also requires an eye to what improvements will yield the best return. By focusing on practical needs, like roofing and living space, or aesthetic improvements, property owners can strategically invest in things that people actually want in a house — an reap major profits as a result.