Very rarely do homeowners set out to sell a house and only break even. The name of the game, whether you’re selling a home you’ve lived in for years or are flipping a house, is to make a profit. That’s where home renovation ideas come in. Performing low cost renovations is an investment tactic that can make a house appealing to buyers while making the sale of the home profitable for you. The possibility of making tens of thousands of dollars in profit is an exciting prospect, but experienced real estate agents and home flippers alike caution against getting carried away with your remodeling ideas. Keep it simple, don’t overlook necessary repairs, and above all: stick to your budget.
Make a Financial Plan
Before you even start formulating home renovation ideas, you need to create a budget, and that involves more than simply deciding you’re only going to invest in low cost renovations. Bob Vila says the first step in remodel budgeting is to do the homework. You’ll need to know what comparable properties in Meridian have been selling for. Pay particular attention to the ones that sold quickly and what features they had. Next, get a home inspection or perform the equivalent to identify any potential hidden repair issues that may need addressing before the house can sell. Finally, make a list of remodeling ideas for each room, starting with repair necessities but also including things you’d like to do.
Next, set your budget. Looking at your target sales price, how much you paid for the house, and what your home renovation ideas will cost, you should have a good idea of how much you can spend renovating the house and still make it worth your time. Don’t get carried away with creating your dream house. Stick to the budget you set and be satisfied to offer a house any buyer could see as their home.
Home Renovation Ideas for the Rooms That Sell the House
If there’s room in your budget for some significant remodeling, put the extra money into the kitchen and the bathrooms. According to RehabFinancial, those are the two rooms that sell a house, and improvements in both are the secret to making your home renovation ideas profitable. That doesn’t necessarily mean gutting those rooms for total makeovers. In many cases, all that’s needed are some low cost renovations that will update them. Remodeling ideas like painting cabinets instead of replacing them, updating appliances, fixtures and hardware, and addressing safety issues, if any, are affordable projects that pay for themselves.
Remember the Exterior
A big mistake some homeowners make when remodeling is underestimating the value of curb appeal. Don’t ignore your house’s exterior in favor of interior home renovation ideas. Do things like:
- fertilize and mow the lawn
- trim the hedges
- paint the front door and the trim
- install a new mailbox and/or house numbers
- update the outdoor lighting
- install a new doorknob, knocker, and other exterior hardware
All of these are low cost renovation ideas that will give the house a facelift that will, in turn, make a great first impression. Just look for things that stick out to you and others and resolve them.
Know Your Product
There’s something to be said for living in a house while you’re renovating it. HGTV highly recommends it as a way to ensure your remodeling ideas are ones that are functional. If you’re redoing a house you already live in you’ll soon learn how valuable that experience can be. Moving into a house you’ve purchased for the purpose of flipping can save money on living expenses—you won’t have two mortgages or rent on top of a mortgage—while giving you the chance to experience firsthand the practicality of the improvements you make. Even if you don’t live in the house before you sell it, it’s still a good idea to “test-drive” your home renovation ideas, considering them from the buyer’s prospective.
If you’re renovating a house to sell or are in the market for a flipping project, give Jeff Stewart at Stewart Realty a call. Jeff is a former appraiser and home flipper and has some terrific remodeling ideas and experience with low cost renovations. He can tell you more about Meridian or the rest of Southwestern Idaho as well as give you a personal tour of the area and some great homes that fit your style and budget.