The United States housing market continues to be healthy, attracting all types of buyers. Best of all, it’s showing no signs of slowing down.
According to Redfin, both the median sales price and the number of homes sold are increasing year over year, which can be a good sign for those looking to make a profit on their home.
Whether you’re looking to purchase your forever home, buy a rental property, or fix and flip a house, you may want to consider these five renovations. Not only do they add value to your home, they also make the property more attractive to renters and buyers.
Table of Contents
1. Curb Appeal Enhancements
Your home’s exterior is its first impression. Many potential renters and buyers make a snap judgment based on what they see, and it can be challenging to overcome once it’s made. Making exterior upgrades is a great way to increase your property value immediately.
You can easily do this by planting new flowers or bushes and replacing mulch. You can also place basic home decor like welcome signs or seating, install outdoor lighting along the walkway, or add string lights on a patio. These changes are simple, but they’ll immediately give your exterior a facelift. Potential residents will feel more welcome, and you can cultivate that feeling throughout the home once they get through the door.
Of course, not all curb appeal investments are simple. Some homes may require fresh paint, new siding, or replacement roofs. These will cost more, but you may also be able to charge more, helping you recover more than just your initial investment. Weigh the pros and cons of these larger investments based on how much additional value you’ll get.
2. Kitchen Remodel
For many, the kitchen is the heart of their home, so the more up-to-date it can be, the better. Consider replacing the appliances and adding new counters, backsplash, cabinets, and other cosmetic enhancements.
Take a look at what is popular in your local area, as trends can vary from state to state. What’s popular in California may not work in Virginia, so it’s important to be realistic about what’s possible within your space while being mindful of overall costs.
Kitchen remodels can be expensive, and many may consider taking out an additional loan to finance the project. If it’s an investment property, you may consider taking out a hard loan to cover the initial costs. While these terms may be less favorable than others, you can refinance the property with a DSCR loan in Virginia once the renovations are complete and you are ready to start generating rental property income.
3. New Flooring
New flooring increases a home’s property value, though how much depends on the flooring you install. Wood has the highest return on investment, while tile, stone, and marble are also great options. They cost more to install, but people are willing to pay more for the high-quality materials they won’t need to replace.
As a general rule, carpet is becoming a less popular flooring choice. It’s harder to clean and traps dust. Depending on the color, it can look dirty. However, carpet may be more attractive if you live in an area with harsh winters. It will help your home retain heat, and the floors will feel warmer in those colder months.
4. New Doors
Doors are an often overlooked feature that can be relatively inexpensive to replace but yield a strong return. New garage doors can bring new life to this outdoor structure, replacing dented and dingy old features. Add a screen door to help you get the breeze moving through your home. You can even paint over your existing doors to help them look brand new.
New doors can help improve your home’s energy efficiency, preventing drafts during all seasons. Many individuals can even install their doors, reducing the initial cost significantly. These small changes add up when you’re increasing your home’s value, but they won’t go unnoticed by savvy buyers and renters.
5. Universal Colors
Whites, grays, tans, browns, and other neutral colors set a blank canvas for potential renters and buyers. They can see all the ways they want to make a mark in the space, and it’s easier when they don’t have to start by covering up your work.
While designing to your tastes is tempting, avoid the urge if it’s not your forever home. This may make it harder to sell in the long term or reduce how much you can charge in rent. Accent walls, trendy wallpaper, and eccentric decorations can lessen the property’s initial value. Take a few days to remove those items, including any bold design choices. You’ll appreciate it later.
Conclusion
As you look to increase your return on investment, simple renovations can help improve your property value. Many of these enhancements can be done at home with materials and a little expertise; however, hire licensed contractors for work that requires certification, such as plumbing and electricity. Don’t cut corners in these areas.
Your property should have a timeless quality to garner the highest return on your investment, and minor improvements can make a big difference in the long run.
