How can you maximize property value through repairs and renovations?

Maximizing property value through repairs and renovations begins with determining the financial goals for the property. Firstly, obtain a home appraisal to know the current market value and condition. It is important to keep repair and renovation costs moderate by performing those tasks that any typical homeowner can perform. Electrical and plumbing repairs and updates should always be performed by a licensed and certified professional. Pay attention to not over-invest in updates and install updates with a broad public appeal. Also, it is important to emotionally detach from the property, detachment allows owners to view the property from an analytical vantage point. This helps retain the focus on the financial goals of the property sale.

I was watching a show called "Flipping Homes LA" or something like that, a while back. There was a small little storage space in the back yard, and they were able to receive the approval to make it into a small guest house (potential AirBNB)... and that added a large amount of additional value. As someone else mentioned... be sure to work with a trusted contractor who has been doing this type of stuff for a long time. The potential home buyer can obviously get in trouble if there are foundation problems. That can sink a lot of their money right-off-the-bat...

*First impressions matter. Enhance the exterior of your property by maintaining the landscaping, painting the exterior, and ensuring the property looks well-maintained from the street. *Kitchens and bathrooms are key areas that can significantly impact property value. Consider updating fixtures, adding modern appliances, and refreshing the look with new paint or tiles *Make your property more energy-efficient by investing in insulation, energy-efficient windows, and modern HVAC systems. This not only adds value but can also reduce long-term operating costs. *A fresh coat of paint can do wonders for a property. Stick to neutral colors that have broad appeal, as they allow potential buyers to envision their own style in the space.

Think ahead about items that would be noted on a home inspection. Fix/repair/eliminate those issues so that they never come up on the first place. Do not introduce more variables that can be used in the negotiation process. Some investors will even go so far as to pay for their own home inspection prior to putting the property on the market, just so they can use that as a punch list for things to repair. You could even use that inspection as a selling point to show a potential buyer. "These items were found by a home inspector and they've all been repaired". A potential buyer will still most likely get their own inspection, but it promotes the properties condition regardless.

*Begin by identifying the areas of the property that need attention. Focus on addressing any issues that could potentially deter buyers, such as a leaky roof, outdated plumbing, or electrical problems. *Functional improvements take precedence over cosmetic changes. Ensure that major systems like the roof, HVAC, plumbing, and electrical are in good working order. Buyers are more likely to pay a premium for a home with updated and well-maintained infrastructure. *Kitchens and bathrooms tend to have a significant impact on property value. *Invest in energy-efficient upgrades, such as installing new windows, adding insulation, and upgrading to energy-efficient appliances.

Hiring an appropriate contractor for your project is essential. We recommend getting a minimum 3 contractor bids. Create a detailed scope of work before meeting with the contractors. A documented scope of work ensures that the contractors you are interviewing are bidding on the same scope of work. Research the history of the contractors being considered for the job. Search the internet, the local BBB, and your state's AG office for any customer filings or complaints. Contractors should be licensed and be in good standing with recognized trade organizations. Lastly, contractors have to provide a legitimate business location and phone number in addition to contractor workers' compensation and commercial general liability insurance coverage.

When hiring a contractor, don't shop price, shop results. One quote may be a little higher, but you usually get what you pay for. Will they do the work right the first time, which will allow you to get the property on the market sooner? Do you have to micro manage the contractor to insure they are doing the work right? What is your time worth? Will the work appear to be high quality to a discerning buyer or will it look "cheap"? Established, well respected contractors have a reputation to uphold. They are less likely to cut corners with labor and/or materials. They want to earn your business on the next project by doing a good job on the current project.

*Ensure that the property is thoroughly cleaned, and any necessary repairs are completed. A well-maintained and clean property creates a positive impression. *Arrange furniture in a way that highlights the flow of the space. Use furniture to define the function of each room and create a sense of spaciousness. *Ensure that each room is well-lit. Use a combination of natural and artificial lighting to create a bright and welcoming atmosphere. *Showcase the key features of your property. If you have a fireplace, architectural details, or scenic views, make sure they are highlighted and not obscured. *Consider using subtle, pleasant scents in the property, such as fresh flowers or a light air freshener. Consider scents that aren't overwhelming.

Staging a property will certainly make it more appealing, but don't forget about the other senses of smell, touch and hearing. What does the property smell like? Does it smell clean? Scented candle or air freshener? What temperature is it? If it's hot outside, setting the AC a little lower with the ceiling fans on will make the home feel refreshing when people enter (or warm an cozy on a cold day). What do people hear? Do you have nice, soft music playing in the background? Or can they hear the traffic outside? The neighbors loud music and people talking? Or a loud HVAC unit that isn't broken, but you can still hear. The subtle things can make a difference.