Thinking Like a Flipper: 4 Updates That Can Increase The Value of Your Home
Thanks to reality TV shows, the concept of “flipping” a house has become enticing for many people.
In 2017, just 5.7% of all home sales were flips. By 2020, that share jumped to 7.5%. Going through 2021 and heading into the future, we expect to see that number rise even further.
So, why is everyone “fix and flipping” their homes? Truth be told, it’s the fastest way to skyrocket your home’s value.
While you may have images of eager “handy people” tearing their homes asunder before building them up again, in reality, home flipping isn’t always a huge undertaking.
Performing regular chores from moving your lawn to painting your garden walls can increase your home’s market value. Even just sprucing up a few décor elements can give your home that “brand new” look.
So, let’s get our “flipper hats” on and take a look at some potentially lucrative flipping ideas below:
Your home’s paint job is the first thing potential buyers see, and as we know – first impressions matter, especially on the housing market. So, to entice buyers to take a closer look at your home, you’ll want to make sure its paint looks brand new, pristine, and “suitable.”
What do we mean by suitable? Let’s take a look:
Studies have shown that bright-colored homes depend on selling slower and for less than their more standard-colored counterparts. Yellow is by far the biggest repellent, while sage green and other muted tones tend to pull buyers in.
That said, most buyers will still consider paint quality a priority over color. Paint is effectively your home’s barrier against the elements. If it’s chipped, worn, or aged, the chances of a home’s infrastructure becoming damaged rise considerably.
But does a fresh layer of paint pay off? Here’s how much it costs on average to paint a house by size.
- 1-story 1,000 square feet: $1,000-$3,000.
- 2-story 2,500 square feet: $3,000-$5,000.
- 3-4-story 4,000 square feet: $4,000-$7,000.
According to a HomeGain Top DIY Home Improvements for Seller survey, painting the interior of a home results in a 107 percent return on investment (ROI.) Painting the exterior leads to a 55 percent ROI. Overall, you can expect to make a profit of $2000-$4000.
But what about when it comes to the interior of your home? As it turns out, neutrals are the favourite among buyers. So, be sure to use muted, natural tones such as browns, beiges, and off-whites.
Note: According to a Zillow Paint Color Analysis, a black front door could increase the price of your home by 2.9 percent.
We see a lot of our home’s countertops. Whether we’re cooking, baking, cleaning, or just lounging around – we become familiar with all of their quirks, flairs, and what makes them ours as opposed to anyone else’s.
So, while we may not acknowledge it often, countertops mean a lot to us. How can we be sure of this? Research points in the same direction. In fact, it’s believed that installing brand new countertops can raise your home’s value by three times the price of the fresh countertops. More interesting still? Make that 25% of your home’s value increases if the countertops are granite. Sound excessive? It’s not.
Think about it. Granite is a premium material composed of naturally-occurring quartz, mica, and feldspar composites. Every time these strong materials are brought together to make a granite surface, they form a unique configuration. Moreover, they’re essentially chip-free and scratch-proof, meaning that even the sharpest knife couldn’t make a mark.
Granite surfaces are an investment, and the buyer knows it. Their timeless appeal and luxurious air mean that the buyer will also reap the financial benefits of having granite countertops if they plan to sell the home themselves.
In short, installing granite countertops is a win-win situation for both the buyer and seller alike.
Curb appeal is important to 71 percent of homebuyers when choosing their abode, according to a 2013 National Association of Realtors survey. This buyer preference comes as no surprise – curb appeal can increase perceived home value by 5 to 11%.
Despite its apparent advantages related to curb appeal, landscaping is still overlooked as a home flipping strategy. Landscaping involves taking a simple brick and mortar property and turning it into a desirable home by using plants, trees, flowers, and other such outside design elements.
However, just as landscaping can increase your home’s value, it can also do the opposite. The key to worthwhile landscaping is focusing on the tasks buyers are looking out for, while keeping your home’s structure in mind.
Lawn maintenance: This is the single most-rewarding landscaping task, returning almost three times what you spend on it.
Use mature trees and shrubs: These weathered and long-lasting additions can increase a home’s value by 15%.
- Keep your garden tidy.
- Repave your driveway or front pathway.
- Repair or replace any cracked or damaged fencing/walling.
- Consider installing lighting fixtures.
- Sew flowerbeds.
- Water features have dropped in popularity.
- Avoid hot tubs & pools if possible.
- Steer clear of sports courts.
- Large concrete expenses are a no-no.
Flooring has the power to make an entire home appear cheap or expensive. Since it’s often the deciding factor, flippers always want to get it right. Interestingly, you may already have a flooring goldmine hiding right underneath your current flooring. If you pull back your carpet, laminate, or whatever else, what do you see? If it’s hardwood – you’re in look.
Almost every buyer wants hardwood flooring in their home. It’s easy to maintain, reliable and has that high-quality look. Consequently, installing or cultivating hardwood floors in your home is your surest bet for increasing its value.
However, laminate floors are known to create the same effect as hardwood floors without the added cost. While you won’t have to pay as much for laminate flooring as hardwood flooring, they usually produce a lower ROI.
According to buyer surveys, tiles are a reliable flooring choice for kitchens and bathrooms, but they’re not entirely desirable in any other room. That said, you may have already guessed the flooring that’s a no-no in almost all cases: carpet.
Thinking like a flipper doesn’t just involve updating every corner of your home – it’s also about being savvy when it comes to knowing what to flip. Simply put, some upgrades simply aren’t worth it. Most buyers won’t be willing to fork out an extra $20,000 for a swimming pool just because it’s new. You’ll need to put yourself in the buyer’s shoes to know what they will and won’t pay for. And of course, you can always check market trends like we’ve outlined above to know where the flipping profits reside within your home.