Make Money with Home Renovations

You might not like the idea of doing home renovations, but they can be very rewarding if you do them right. Some people purchase houses to renovate so they can flip them for quick cash. Others may rent out houses after they renovate them in order to set a higher rental price. Then, there are people who simply wish to renovate their own home because they want to be more comfortable there. Overall, value will be added to the home no matter what.

Home renovations involve a lot of planning, stress, investment, and hard work. You’ll certainly want this effort to pay off in the end, right? The rewards will be there after your home is renovated because it will have a higher market value, whether you’re selling it or renting it out. If the house is being rented, the owner will usually raise the rent price to make up for their renovation costs.

In the end, a renovated home will add value in many ways. You just need to plan carefully and do your research.

 

Conducting Research and Creating a Concrete Plan

Don’t start renovating your home until you know what you’re doing. Home decoration magazines and home improvement television shows might have motivated you to get started. But you need to plan out what you’re going to do first. If you have not finished renovations that are needed, buyers will be worried. The visual appeal of your home is everything when attracting buyers. They don’t want to purchase something that looks awful unless you’re selling the home as a fixer-upper. But then, you won’t get a good price for it.

Therefore, figure out how many renovations your home needs and what the cost of them will be. Then estimate what the value of the home will be after you complete the renovations. If the value outweighs the renovation costs, then go for it. Sometimes you may only need to renovate a few areas of your home rather than the entire thing. Keep that in mind too.

Also, see what other houses in your neighborhood are selling for. This will give you a good indication of what the value of your home will be afterward. You can seek help from real estate agents regarding the sales pricing and the typical cost of houses in your neighborhood.

Good First Impressions are Everything

Your home’s exterior needs to give prospective buyers a positive first impression. It needs to look fresh, new, and clean. You can do this yourself by cleaning the windows, mowing the lawn, and giving your home’s siding a new coat of paint. A new fence in your yard might be a good touch too. Smaller renovations like these will go a long way in making your house look more presentable.

Make a Budget

The first thing you should do is make a budget for what you want done. This will help ensure that you stick to your original plan and not get sidetracked with other investments. It may even be a good idea to have a separate budget set aside for each room that you’re renovating. When you are finished making your budget, add up the total amount it will cost to do the renovations. If it is equal to over 10% of the home’s market value, then it is too much money. Your renovations should cost 10% or less of the home’s value. That way, you don’t spend excessive amounts of money and end up with little profit in the end.

20% of your budget for renovations should go toward the bathrooms and kitchen. Buyers care a lot about these rooms. Not only do they care about their looks, they also care about whether the plumbing and appliances work too. Any problems with these areas need to be addressed first. You should have another 10% of your budget reserved for contingency expenses. These are surprise expenses that you don’t plan for during the renovation process.

Simple Works Great

You will want to keep your spaces simple for the most part. Buyers like open spaces that are bright and beautiful. Consider adding new flooring and a fresh neutral paint coating to the walls. Install some new door handles and light fixtures too.

If you want to go even farther, add plantation shutters to your windows. This will give style to your existing rooms. You can even put plantation shutters inside your home between various rooms. They can be converted into sliding doors that are adjustable.

 

Should you hire a professional or not?

There are certain tasks that you can do yourself and there are tasks which a professional should do. Figure out which ones you’re capable of doing without making any mistakes. If you’re not sure or you know you can’t do certain tasks, then have a professional do them. Otherwise, you could mess the entire project up and must start over again. If you are making changes to the structure itself, try to obtain multiple quotes from various contractors. Lastly, you need to trust the people who are working on the renovations with you.