When flipping a home, knowing how to increase the home’s value is key to making profit. These home renovation ideas will help you add value to your project.
You’ve heard about home renovations on TV, in your favorite magazines, and online. The home remodeling industry is growing significantly in recent years, by 3.8% just between 2022 and 2023. Well, it can do a lot more than simply entertain you!
With the right renovations, you can even increase your home value significantly without breaking the bank. Let’s talk about some home renovation ideas to get started on this year and help you earn a profit on your house!
DIY vs Professional Home Renovations
Of course, you can always save money by doing things yourself, but only if they are done properly. Luckily, there are thousands of smaller projects that nearly anyone can do to increase their home value.
However, professionals with the right insurance are the safest option, although they are more expensive. If you are not an experienced contractor of any kind (painter, carpenter, plumber, etc.), then it’s generally best to leave the larger jobs up to the professionals.
Essentially, you should only choose DIY if you know you can get the project done correctly. If you spend the time and money on a DIY project only to require professional help to fix your work, you’ll almost certainly lose money on that deal.
Conversely, if you need a job done by professionals and you are unsure that you’ll get your intended ROI, then it’s best to move on to another project while you determine this.
Flip vs Live-In
To determine the type of ROI you need, you’ll need to understand what you want from the house. Will you be living in the house for ten years and then reselling, or are you doing a fix and flip?
If you’re flipping the house, you want an ROI of above 100%. This will likely rule out some major renovations unless you know how to do them yourself. For example, the average ROI for a kitchen remodel is around 59%, meaning that you would likely lose money by hiring professionals for such a big job.
However, if you plan to live here for another five or ten years, then you will get a lot of use out of that kitchen remodel and still increase your home value. In that case, it may be worth it to you.
All in all, just ensure that you’re choosing the right house, the right location, the right price, and not biting off more than you can chew.
6 Best Home Renovations Ideas for Value
Before we offer any home renovation ideas, let’s first talk about what you’re trying to accomplish with each of them. How do renovations increase home value? Well, there are a few ways.
The right home renovations will improve the aesthetics of a home, the function, or simply help potential buyers envision their life there. For a few examples, a new paint job can increase the form, new appliances will improve the function, and some amenities (lighting, decor, furniture arrangements, etc.) could improve the emotional value for viewers.
Now, if you’re certain that a renovation will improve one of these aspects of your home, then the only other factor to consider is the cost/benefit ratio. DIY will obviously save you money, but it isn’t always feasible, so crunch the numbers before starting a project. Otherwise, let’s get started!
1. Enhance Your Outdoor Spaces
Of course, this is a broad topic, but think about how important your outdoor space is. Curb appeal is critical for selling a home, and the backyard is likely where potential buyers will envision their future the most.
Luckily, this is one of the easiest DIY stops if you’re on a budget or looking to start small. Anybody can perform some basic landscaping ideas, add some new lighting to the deck, and more. Remember, small things add up.
For example, if you spend the day making a firepit with some bricks or stones and a bag of cement, this small step could help visitors imagine their future social gatherings. Add some string lighting around the area, and you’re golden.
However, the ideas don’t stop there. Building a patio, painting the deck, planting some bushes, and seeding the lawn are very inexpensive and easy DIY projects that could help improve the curb appeal significantly.
Other than that, you can always hire somebody to repave the driveway, fix some steps, replace the siding, or for anything else that needs improvement. If you’re looking to sell relatively soon, then talk to your contractor about the ROI estimate before starting.
2. Replace Doors
Interior and exterior doors go a long way for a remodel. Replacing your front door with a newer steel door is highly recommended, as this is a sought-after feature on the market that will also increase curb appeal.
For interior doors, try to choose doors that match the aesthetic you are trying to create. Neutral tones (especially white) or natural wood are highly recommended.
Beyond that, garage doors make up for a large portion of the front exterior visible from the road. Replacing your old garage doors or even simply power-washing and repainting them will go a long way for curb appeal.
A new coat of interior paint (especially light colors) will help improve the interior appeal of your home. Spend a weekend repainting the majority of your rooms and creating a more uniform aesthetic throughout the home.
Don’t know how to paint? Hiring professionals for interior paint jobs won’t be too expensive.
While we’re talking about your interior walls, you should take the time to patch up any holes or replace the drywall as needed before you start painting. Slapping a coat of paint over noticeably damaged walls won’t do much.
If you know what you’re doing, or if you’re willing to spend the money, a new exterior paint job will certainly help the sale. Alternatively, you can choose to upgrade to vinyl siding, which lasts nearly forever and increases the home value even more!
4. Upgrade the Insulation
Laying new insulation in the attic will increase your home value, but you don’t have to stop there. Upgrading your windows, doors, and other air leaks will dramatically increase insulation.
Air leakage accounts for roughly one-third of your home’s total heat loss. Laying some insulative caulk around your windows and using better doors (and stoppers) could seriously improve your home’s insulation for cheap.
Upgrading your insulation will help you advertise your home as eco-friendly, more sustainable, and more energy-efficient. Modern buyers are often looking for these traits when home shopping.
5. Upgrade the Floors
Whether your home has old shag carpeting or hardwood floors, it may be time for an upgrade. Fortunately, you can spend as much or as little as you want with the right tools.
Laying down tiles will be more expensive than linoleum, and hardwood will be more expensive than carpeting. However, any new flooring type is bound to sell much better than an old one, so any upgrade is worth it.
6. Keep Up With Maintenance
Lastly, simple steps will go a long way. You don’t need to buy expensive equipment to help your home look and perform better.
Change your furnace filter regularly, clean the chimney, lay traps for pests, and keep an eye out for any potential issues. Much like a car, a well-maintained house is bound to sell faster and for a higher price!
How to Fund Your Projects
Finally, let’s talk about funding your projects. If you’re doing DIY for everything over a long period, especially smaller stuff, you’ll likely be paying out of pocket or using a credit card.
However, if you’re looking to sell your home within the next 12 to 18 months, then fix and flip loans are your best option. These will help you get the funding you need upfront for a quick resale without having to worry about monthly payments in the short term. You will only have to repay the loan once you resell.
For larger renovations, a fix and flip loan is the perfect way to get the right funding when flipping a home. They are specifically designed for these projects, and you won’t need to pay out of pocket for everything.
Start Charging Your Power Tools
Now that you know some home renovation ideas to help increase your home value, there’s no time like the present to get started. The sooner you do, the sooner you will be able to flip it for a profit!
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