Fix it and flip it is a phrase often associated with real estate investing. The idea behind the idea is that the completion of a few choice remodeling projects will add significant value to the price of a home. With this in mind, several homeowners undertake major renovation projects before putting their homes up for sale with the thought that sprucing up the place will result in big bucks. Read on to find out how to renovate strategically and which renovations actually add value to your property. (To read more about real estate, see Smart Real Estate Dealings, Investing In Real Estate and Tax Deductions For Rental Property Owners.)
- The Difference between Investors and Owners
Updating an investment possession is generally a sound strategy because successful advocates of the fix-it-and-flip-it philosophy purchase run-down homes at bargain prices and save money on the repairs by doing mainly of the work themselves. Small sweat equity goes a long way toward making a real estate investment profitable.
Investors cautiously choose their remodeling projects, focusing on those that will result in the most value for the least amount of effort and charge. Element of the process includes paying attention to the other homes in the neighborhood to avoid over-improving the possessions. If nothing of the other houses in the area have crown moldings and Corian counter tops, adding these facilities is unlikely to result in a significantly higher selling price.
- The Basics
The basic are the things that buyers expect while they purchase a home. This includes a roof that doesn’t leak, functioning gutters and downspouts, a dry basement, a good quality furnace, hard floors, walls that are in good repair, retaining walls that work and all of the other common-sense objects that you expect to find in a home.
- Curb Appeal
Items that add curb appeal help the property to look good while prospective buyers arrive. While these projects may not add a considerable amount of monetary value, they will assist the place sell faster. Curb appeal items include a nice green lawn, attractive landscaping, new paint inside and out, new carpet and new appliances.
- Adds Value
The projects that add considerable importance are big favorites of fix-it-and-flip it advocates. As most of these efforts will not recoup their costs, some will come close. Projects that offer the most bangs for the buck include new siding, kitchen remodeling, bathroom remodeling, new windows, decks and the accumulation of living space.
- House and Home
Regardless of the project that you are considering, remember that your main residence is not just a house, it’s your home. If you plan to live there for many years to come, add amenities that you desire to have regardless of their impact on resale. When it’s time to sell, do the essentials to get the property up to par for the neighborhood and add some curb appeal, but don’t bother undertaking a wide array of projects strictly in an effort to increase the value of the property.