Flipping homes can seem like a great side hustle. With the right property, you could make quite a bit of money. But, there’s a lot of work that goes into flipping. In order to capitalize on your profit, it’s important to know which improvements to make and which ones to ignore. To do this effectively, you’ll need to know the best ROI home improvements to make! And, on the flip side, you should also know which renovations to avoid!
If you’re new to buying and selling homes, you could struggle with knowing what those are. But no worries! Here is a list of the best ROI home improvements that you should invest in if you’re flipping homes.
First, let’s talk about the most popular home improvements that many homeowners will want.
- energy-efficient items (like windows and appliances),
- and a nice kitchen and bathroom are the most popular.
Because of this, including these improvements can make all the difference when flipping a home. Potential homeowners would be happy to pay more if that means they don’t have to do extra work on big projects.
Because these specific updates are so popular, they’re often the highest ROI home renovations as well!
Is Now a Good Time to Remodel in 2021?
Remodeling made no sense when costs were way up during Covid. But what about now? Does a remodel make sense financially?
The short answer…Yes!
Many people are slowing down on projects and renovations due to the upcoming holidays. So now might be the perfect time to remodel and start home improvements.
If you plan on hiring a contractor to help, you should be reaching out to get on their roster now. With potential shortages in supplies and hands, the sooner you reach out for help, the better
What Should You Not Fix When Selling a House?
When flipping a house, there are a few things to keep as-is. For one, some projects do not have a high ROI, so you’ll spend a bunch of time for little return. And for two, new homebuyers don’t really look for these renovations, so it’s better to focus on what they do.
What are these items?
- cosmetic flaws,
- minor electrical issues,
- and removable items (like carpet on stairs) aren’t big deal breakers for potential homebuyers.
Instead, it’s important to focus on things they do care about, like a nice bathroom and curb appeal.
When is the best time to renovate a house?
November, December, January, and February are all great months to renovate a house.
This is because most people slow down their home improvements to focus on the holidays and new responsibilities with a new year.
Big projects like bathroom and kitchen remodels are also cheaper during this time. So if the house you’re flipping needs those renovations, now is the perfect time to get the materials and get to work.
Best ROI Home Improvements To Do Right Now
Now that you know about the best time to remodel and what not to do, let’s talk about the best ROI home improvements you can make.
1) Complete A Kitchen Remodel
The kitchen might be the first place you think of when it comes to high ROI home improvements. It’s the heart of the home, after all. And, it’s what most homebuyers will pay a significant amount of attention to.
While this may be an expensive room to renovate, it’s one that should reap high profits. There are several ways you can go about this, although you’ll need to focus on a few particular areas.
New appliances are recommended, especially if they’re energy-efficient. You should also focus on the countertops. Sleek and modern-looking has been a noticeable trend in recent years and shows no signs of slowing down.
That could make it more than worth investing in. And, retiling the walls and floors is recommended as well.
2) Make It Energy-Efficient
Energy efficiency is something that homebuyers will look for. That’s especially true if the home is recently rebuilt or improved.
If the house has drafts, they will need to be fixed. The windows and doors should also be looked at and replaced if they’re relatively old. Also look into the house’s insulation, which may make the largest difference in its energy efficiency.
You might also want to consider solar energy. More and more homes have invested in solar panels for their property. In doing so, they’ve been able to reduce their energy bills. That’s an attractive proposition for buyers, so it’s recommended that you install it. And, you may be eligible for tax benefits with this!
The amount of living space that your property has will be one of the most significant indicators of how much it’ll sell for. Increasing this will naturally make your house’s value go up. However, based on your budget, you might be limited on what you can do.
Installing a deck could be one of the more affordable ways of adding extra space. And, it can be one of the easiest home renovations you can take advantage of. If you go this route, you’ll need to make sure that everything is done to a high standard.
The deck will have to put up with the changing weather. You can minimize possible damage by making sure it’s well protected. This will also reduce maintenance time, which should also help to improve property value.
4) Complete A Basement Or Attic Remodel
Another easy way to improve a property’s value is to increase its square footage. But you’ll also need to make sure that this space is livable. If the home has an unfinished basement or attic, that’s a great way to increase livable space.
There are multiple approaches you can take with this.
- For one, you can turn them into another bedroom.
- You can create a family space
- An option for a home gym
- Or, you could set it up to be a possible rental (like a mother-in-law suite or small studio).
While this renovation can become a large cost, you’ll almost certainly reap the rewards once you’ve sold the property.
A potential buyer’s first impression of your property will play a significant role in whether or not they buy it. If it’s a bad one, then you’ll have an uphill battle trying to sell to them. So, you’ll need to focus on making the house’s first impression positive.
Its curb appeal will be the most important factor. That doesn’t mean that you’ll need to completely overhaul its appearance. Instead, you could do something as simple as giving it a repaint. However, the more effort you put into this, the better it will pay off.
Another great curb appeal improvement is the garden or shrubbery around the home. So make sure the shrubs are trimmed, flowers look fresh, and the lawn is mowed.
As minor as these areas might seem, they add up to a much more positive impression than you’d think. The more attractive the exterior is, the more you should expect the property to sell for.
The Best ROI Home Improvements
If you’re considering a career in flipping houses, understand that you’ll need to put a lot of work into them. Performing home renovations will take the most work.
Having a plan developed in advance can help reduce stress and make sure you’re making the profit you want. Without it, you won’t be able to juggle all of the work that needs to be focused on.
While these home improvements may seem expensive, they could offer a larger return than you’d think. They can easily make the home worth more, thus increasing what you can put in your pocket.
What do you think of these ‘highest ROI home renovations’? Which will you implement?
AUTHOR Kimberly Studdard
Kim Studdard is a strategy consultant and course launching expert. When she isn't spending time with her daughter and husband, or crying over This Is Us, you'll find her teaching other mompreneurs how to scale their business without scaling their workload.