Real Estate Reforms and Customizations


"Fix and renew" is a phrase often associated with real estate. With that in mind, many homeowners make major renovations in their homes before putting them up for sale: decorating the place will always raise the selling price, right? Wrong. More often than not, these updates do not pay for themselves. Read on to find out how to renew strategically and what kind of projects really add value to your property.

The difference between investors and owners

Updating an investment property is usually a good strategy - if done right. Successful proponents of the fix-it-and-flip-it philosophy are investors, with the investor's mantra of "buying low, selling high." Thus, they buy rundown homes at low prices and save money on repairs doing most of the work. A little bit of hard-earned equity helps make real estate investment profitable. They carefully choose their remodeling projects, focusing on those that will result in greater value for the least effort and cost. Part of the process includes paying attention to the other houses in the vicinity to avoid improving the property. If none of the other houses in the area have crown molding for example, the addition of such facilities is unlikely to result in a significantly higher sale price.

Homeowners, on the other hand, often take a less strategic approach when remodeling their homes. As a result, they may end up putting a lot more money into the project than they would recover when they sell it. Although it is certainly a smart initiative to make some improvements, it is not advisable to overdo it. Try to make the emergency renovations, so that the property is able to become habitable and can return the amount invested in the purchase added to the sale value.

So how do you know which upgrades are worth the hassle and which ones are not? To make the most of your remodeling, it pays to keep in mind four types of projects: basics, brake appeal, added value and personal preference.

The basic

The basics are the things that buyers expect when they buy a home. This includes a non-leaking roof, working gutters, if it has a basement, it must be dry, if the area of ​​the property is cold, a simple fireplace can be installed, solid floors, walls in good repair, walls retention function; Most potential buyers also expect their home to have plumbing systems and the electrical part in good condition. In luxury properties, the basics can also include a number of bedrooms, bathrooms and garages, as well as other common neighborhood amenities.

This does not mean that you need to upgrade everything. Instead, you can focus on regular maintenance and on smaller, cheaper improvements that keep everything in working order.

Adding these items to a property that does not own them can add value that is enough to pay for the purchase of the property.

On the other hand, as long as you want your home to stand out from the competition, you should not make unwarranted upgrades that far exceed many other properties in the area. Not only will you end up losing money, but you can even scare potential buyers. (For more information, see Initial upgrades that do not pay.) In short, before investing tons of money on an elaborate comprehensive retirement project, consider what competing properties in your neighborhood have to offer. Find out how similarly priced homes in your neighborhood behave and make improvements based on your specific market.

These are tips that can help anyone who is interested in investing in real estate in need of a renovation before they are negotiated.
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