Making a business out of flipping houses has become a popular real estate trend. With the inconsistent housing market, many realtors, contractors, and architects have had to seek out other ways to make a profit. With their success, many other people have considered making a career change to house flipping.
But, if you are not in the real estate or construction business, it can be difficult to determine not only what homes are the best buys, but what changes should be made to yield a high return profit.
Here are four renovation tips that add value to the home and money in your pocket:
Depending upon whether you purchased a home that is a complete tear down, or one that is fairly decent in the scheme of things, one of the most important changes you can make is to change the flooring from carpet to hardwood or laminate.
In order to make the most off of this property, leave carpet in the bedrooms. Carpet is much cheaper and most people will not feel that carpet in the bedroom detracts from the home’s overall look and feel. However, carpet in the main area of the house will deter many buyers.
Instead, look into flooring. Hardwood and laminate look identical, however laminate is not real wood. But, the popularity of laminate flooring with many homeowners and even contractors is the fact it is durable, beautiful, and less expensive than hardwood flooring. Adding laminate to the home will add a luxurious appeal to the home, which will drive the asking price up.
Many house flippers neglect the outside of the home, which is a serious mistake. While it might seem insignificant, the outside of the home is the first and last impression a buyer sees. A buyer should be immediately taken with the home as soon as they drive up and see the front. The lawn should be well manicured, the walkway clear of weeds or overgrown plants, and the entryway should be updated.
Do not forget the backyard makeover either. Many homebuyers will have children, and they will be looking for a safe yard that has a grassy area, seating area, and a safety gate around the pool.
Because the kitchen is more than just the prep area for meals, more and more homebuyers are looking for a nice kitchen that has plenty of counter space, stainless appliances, and clean, updated cabinets. When it comes to a kitchen makeover, it is usually the most expensive renovation in the home. Although it will be a pricey redo, an updated kitchen will add a significant amount of value to the house, as there is a 92 percent return rate of investment.
Although another expensive area, bathrooms and kitchens sell houses. These are the most used area in the home, and homeowners will be willing to pay much more out of pocket if they do not have to renovate those two spaces on their own.
If done the right way, flipping houses can be an extremely lucrative business.