When you’re rehabbing properties, it can be tough to decide which upgrades deserve the time and money and which ones don’t matter. From flooring to walls, there are some upgrades you simply can’t skimp on.
Next time you’re rehabbing properties, follow these real estate flipping tips to ensure you’re making upgrades that will increase the property value of the home:
- New floors. Flooring can command a lot of money from potential buyers. Stained or soiled carpets or hardwood floors in terrible shape can turn buyers away. Upgrading the floor to ceramic tile or decent hardwood can be an investment that pays for itself.
- Light fixtures. When you’re rehabbing properties, make sure to take a look at the lighting. Install lighting in dim rooms to make them more light and airy, and update the light fixtures in rooms that could use a little TLC. Simple changes, such as replacing track lighting with more modern fixtures, can make a huge difference in the look of the property.
- Painting. Almost all flips require painting at some point, so get your rollers ready. One of the biggest real estate flipping tips is to keep paint neutral and bright throughout the house. Dark or colorful paint can overwhelm potential buyers and make them look elsewhere.
- Landscaping. Curb appeal draws buyers in, so you shouldn’t skimp on landscaping. Bright plants and a lush green yard makes your property look more appealing and well-kept.
- Finished basement. If you have money to spare in your budget, you might consider finishing the basement, if you have one. Many buyers are looking for extra space, so finishing the basement to be a den or other living space may help you sell the property quickly and for more money.
- Bathrooms and kitchens. If you’ve been reading real estate flipping tips, you know to “follow the water” and upgrade bathrooms and kitchens. While buyers are typically willing to repaint or even replace flooring, a home with an outdated kitchen or bathroom can seem like too much of a “project” for new homeowners.
Rehabbing properties can be a fun way to get into real estate investing. If you’re looking to flip a home, make sure you’re making upgrades that count – you’ll save your budget and get the biggest bang for your buck.
Watch this video to find out the advantages of plastic synthetic roofing for your home.
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One part of the housing market experiencing a rebound that will probably continue even if the rest of the market remains sluggish is remodeling.
A recent report by the Joint Center for Housing Studies at Harvard University predicted that remodeling would rebound strongly this year after a three-year downturn. Annual growth in remodeling is expected to be around 8 percent.
In fact, the study found, the remodeling market held up far better than housing construction during the recession, with annual spending still close to $300 billion. But as the market for renovations picks up, it may be a good time to consider the problems that could arise.
A group of leading insurers said renovations are a constant source of large claims on homeowners’ policies. And among claims, fire is the most common cause.
Whether the homeowner wants to add a new kitchen or repair years of neglect, the cause of renovation problems is the same. Homeowners are concentrating on the outcome, not on managing the process. Any homeowner planning a sizable renovation should hire a contractor, for efficiency and safety, insurers say.
The one constant bit of advice from insurers is to tell them about your renovation before you begin it so they can tell you what to look out for and, of course, increase your coverage.
But the best policy is still vigilance. The top thing to monitor is oily rags, which strike fear into the hearts of risk assessors. These rags catch fire easily if they are not disposed of properly. The solution is to make sure the rags are put in a locked, fireproof box at the end of each day.
Second on the risk list is the debris from the welding and soldering equipment used on roofs or for installing plumbing and electrical wiring. A common disaster, Mr. Raphael said, happens when a pipe is welded but no one checks to see if any solder has fallen onto the debris below. It can smolder for hours and catch fire later that night.
Thinking about the disasters that can befall your home for the sake of a nicer, updated bathroom may put a damper on some people’s enthusiasm. It can be scary, but if certain things are done, it can be fun and successful.
Do-it-Yourself friendly products made from plastic are easy to install, durable, quiet, and soft underfoot. Home Improvement expert Danny Lipford explains…
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Even as home values continue to drop, homeowners continue to improve their homes. Yet one more piece of data seems to suggest that homeowners are becoming more optimistic about the future.
The Residential BuildFax Remodeling Index, a residential building and permitting database tracking 4,000+ cities and counties throughout the country, rose 18% year-over-year in 2010. After fourteen straight months of increase it reached a peak of 103.8 in December 2010, the highest December number in the history of the index, which started in 2004.
The increase comes at a time when more and more homeowners are underwater, making the financing of remodeling projects more difficult. “We believe many of these homeowners are drawing on their savings or other forms of consumer credit, such as credit cards to pay for the remodeling,” said Bruce Hahn, President of the American Homeowners Foundation. “Anecdotal evidence that most homeowners are opting for less ambitious projects than in the past supports this view,” he added. Another factor may be barriers to other alternatives. “In many markets it is very difficult to sell your home. Even if you can sell your home, financing its replacement may be a challenge because mortgage lenders have substantially tightened borrower requirements. If moving up isn’t an option, improving your current home may be the next best alternative.”
Homeowners need to be careful when selecting remodeling contractors. In good times and bad, complaints about remodeling contractors are near the top of both the Better Business Bureau’s and the American Homeowners Foundation’s complaint list.
There are a number of steps you can take to reduce risk. You should check the contractor’s credentials- carefully. Are they licensed and insured for workers compensation, property and personal liability? If in doubt, ask to see their insurance certificate. Do they belong to the National Association of the Remodeling Industry, the National Association of Home Builders Remodelers Council, and/or any of the more specific trade associations in the remodeling sector? That’s a sign of commitment to the trade and to professionalism. Most also offer certification and/or management training and keep their members up to date on the latest products and techniques. Ask for recent references on similar jobs (employee and subcontractor turnover is often fairly high, so recent jobs are a reliable indicator of their current capability). Check their record with the Better Business Bureau while you’re at it.
If you can’t get references on a particular contractor you’re considering using, consider looking elsewhere. There’s probably a very good reason you can’t get a reference!