House flipping is commonly associated with investment in real estate, and the idea is that certain renovations can add value to a home. Many homeowners hire a General Construction Company in Saint Paul MN, to do significant renovations before selling, with the thought that the improvements can bring them a return on their investment. However, many upgrades fall short. Readers can click here to learn which renovations can increase a home’s resale value.
Owners vs. Investors
Upgrading investment properties is typically a good strategy because it’s easy to buy fixer-upper homes at rock-bottom prices and to save money by going the DIY route. Sweat equity can equal profitability, but there’s a line to be drawn. An investor will focus on projects that yield the most value for the least cost and effort. Owners, however, usually take a different approach, and they often put more money into the home than they can ever get back. To make the most of a renovation, keep these three project types in mind: value added, curb appeal, and essentials.
Essentials
Buyers expect certain things when purchasing a home, such as a solid roof, functional drainage, a working HVAC system, stable walls and floors, and other basics. In an upscale home, essentials could include a certain number of bathrooms and bedrooms or a swimming pool. Adding such items to a home that doesn’t include them does not add value, it just brings the home up to average level.
Curb Appeal
Items that increase a home’s curb appeal help it to look good to potential buyers. While these jobs don’t add much monetary value, they can help a home sell faster. Appealing add-ons include fresh landscaping, a new coat of paint, or new carpet. A General Construction Company in Saint Paul MN, like George F Cook Construction Cox, can help a homeowner maximize the curb appeal of a home.
Value Adding
These projects are popular among house flipping experts. While many will not recoup the entire cost, some come close. Projects offering the most value for the money include bathroom and kitchen remodeling, new decks, new windows, and room additions. Some projects, such as new siding and new kitchens, can recoup 80% of the cost on resale. Click Here for more information.
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