Are you a real estate investor looking to maximize the value of your investment. Preparing properties for rental or sale is an important step in achieving a return on investment, and it can be a daunting task.
In this guide, we'll provide advice on how to increase home value by making simple repairs and updates that will save you money and help your property stand out from the competition.
From minor upgrades such as adding energy-efficient appliances to major renovations like updated kitchens and bathrooms, we'll discuss all aspects of preparing your investment property for maximum return. Read on to learn more about how easy improvements can add huge value!
What Is An Investment Property?
An investment property is a real estate asset that has been purchased with the intent of generating income, either through rental income or capital gains from its sale. Investment properties can range from single-family homes to multifamily apartment buildings and commercial office spaces. When preparing an investment property for sale or rent, it's important to focus on increasing its value and making it attractive to potential buyers or tenants while also keeping your budget in mind.
When Should You Sell An Investment Property?
The decision to sell an investment property should be based on the current market conditions, your financial goals, and the overall condition of the property. If you decide to sell, it's important to understand that there are costs associated with preparing a property for sale such as repairs and renovations.
It is also advisable to consult with a real estate agent or professional who can provide you with an accurate estimate of the value of your property and help you make strategic decisions on how to increase its value. Selling an investment property can make you a profit and increase your net worth, but accurate preparation is essential.
It is also imperative that you consult with industry professionals to ensure you going to get top dollar out of your sale. Whether it be having local decorators in White Plaines, NY help stage your property, or a knowledgable realtor in Pleasantville, NY give you a run-down of the current market conditions, knowing when to enlist the pros can greatly increase your chances of success.
Upgrades That Increase Home Value
When it comes to adding value to an investment property, there are a few upgrades that tend to be more effective than others. One of the most important investments you can make in any property is energy-efficient appliances and systems such as HVAC units and tankless water heaters. These will not only help you to save money on energy bills, but they’ll also make your property more attractive in the eyes of potential buyers or tenants.
In addition, updating kitchens and bathrooms can be invaluable investments that yield a high return on investment. Upgrading countertops, cabinets, fixtures, flooring, and appliances can give a tired kitchen or bathroom a fresh look that will make it more appealing to buyers.
Finally, painting is an inexpensive upgrade that can greatly improve the appearance of any property. Repainting walls and trim with modern colors will instantly make a space feel fresh and inviting, which is sure to impress potential buyers or tenants.
Planning Your Renovation
When undertaking a renovation project, it’s important to have a plan in place and keep your budget in mind. Developing an idea of what upgrades you will make, how much they will cost, and the timeline for completion is key to completing any successful renovation project. This can help you stay organized and on track while preventing any costly surprises along the way.
It’s also important to consider the market you are selling or renting in. If there is a high demand for luxury features such as granite countertops or stainless steel appliances, then you may want to factor these into your renovation plan. On the other hand, if you are selling in an area where more affordable options are desired, you may want to focus on other upgrades such as painting and landscaping.
Clean & De-Clutter
One of the most important steps in making a property attractive is to make sure it is clean and de-cluttered. This may seem obvious, but it’s easy to overlook during a renovation. Taking time to do deep cleaning, decluttering surfaces and closets, and making necessary repairs will go a long way in creating an inviting space.
Another thing to remember is the fewer personal items on display, the better. Potential buyers or tenants will be able to more easily envision themselves living in the space if they aren’t distracted by someone else’s belongings.
Organizing your belongings during this process can be made much easier by:
- Creating effective storage solutions
- Utilizing space-saving furniture
- Donating unused items or selling them at a yard sale
- Renting offsite storage
Price Your Property Competitively
Pricing your property correctly is crucial to ensure that you attract potential buyers and maximize your property's value. Consider researching the prices of similar properties in your area to determine a competitive price point.
In New York, housing prices can vary significantly by location. For example, according to The Hire Realty, the median home value in New York City is $600,000, while in Pleasantville, it's $800,000, and in White Plains, it's $620,000. However, it's important to keep in mind that market conditions and other factors can also affect pricing. Consider consulting with a local real estate agent in your area, to determine a price that's appropriate for your property and the current market.
Hire A Professional Stager & Photographer
Once your renovation project is complete and the de-cluttering is done, you’ll want to show off your newly-refreshed property in the best light possible. Hiring a professional stager and photographer can be an invaluable asset to help make your home stand out from the competition.
A professional stager will help arrange furniture and decor to give potential buyers or tenants an idea of how the space can be utilized, and a photographer will ensure that all photos taken of your property are high quality and show it in its best light.
Ultimately, there are many ways to add value to an investment property without breaking the bank. With a little planning and research, you can make easy improvements that will increase your return on investment when it’s time to sell or rent out your property. Get started today and you’ll be enjoying the rewards of your hard work in no time. Good luck!