House Flippers: Avoid These 4 Renovations That'll Tank Your Property Value
Posted by wahab on July 22nd, 2019
You shouldn't add improvements to a house just because it will look nice. The first and major aspect you must consider is how much value something can add to a house. By doing so, you'll be able to evaluate what to do — and what not to do — in your flip.
At the same time, there are those renovations that may look fine in your imagination, but that will affect the value of a house negatively. Therefore, you can consider those as unnecessary costs that also lower profit by making the home worth less.
Here is info on four different renovations you should avoid:
4 Renovations You Shouldn't Do in House Flipping
1. Painting with the wrong colors
The choice of colors is essential, both individually and combined. However, no matter the project you have in your hands, chances are that heavy and bright colors are never a good option.
Opt for more neutral colors, or at least a soft tone of that color. No matter how much you love a color, keep it away if it doesn't seem reasonable, and most buyers will probably refrain from buying it.
By researching the house flipping market and the area, you might already have an idea of what the buyers are looking for. Use that in your favor, always.
2. Unnecessary luxury
Luxury items may be worth a considerable sum of money themselves, but most of the cases that won't reflect in the house value. After all, those looking for them might just buy if they deem necessary after they have the house.
There are many ways to add value to your next flip property and purchasing expensive luxury items isn't one of them. Therefore, while planning the changes you are making to the house, keep luxury and unnecessary items away, and you won't increase your costs.
3. Forget a cinema or theater room
There are a lot of people who dream about having their own movie theater at home. Therefore, some homeowners build or install a home theater room with a big screen and a high quality of audio. Maybe that's even your thing, but you should keep it away from your house flipping projects.
Once again, that's the type of renovation that won't add much value to a house. Perhaps more than luxury items, yet still not enough to represent a valuable addition. Keep focused on what can add more value than cost, and you will raise your profit.
If you are looking for something original, there are some low-cost rehab ideas to flip a house on the internet.
4. Renovation of a basement
There are certain times when a basement with a particular structure is necessary, but that you can discover when researching the market. Otherwise, you can skip a huge deal of cost by only doing the most basic services to the basement.
Most of the times, you can leave the renovation and new look for a basement to the next owner and buyer. As stated before, you should know your public and won't have problems figuring out what they value the most.
Doing repair and flipping an entire basement with a considerable area is not the type of costs that usually reverts into profit. Therefore, keep it as low as possible.
It's not rare that unexperienced flippers spend too much or try to add way more than necessary to a house, wasting both time and money as interest accrues on their fix and flip loan. Those costs translate in a smaller profit and frustration in the business. You've got to know which renovations are worth the investment in house flipping.
In this article, you learned four renovations that you should avoid. By not choosing the wrong colors, or investing too much in luxury items, a home theater or a good-looking basement, you'll probably increase your profit.
Now, it's time to apply your new knowledge to your business.
About the Authorwahab
Joined: July 19th, 2019
Articles Posted: 15