How to Increase the Value of Your Home or Investment Property
You make profit when you buy, not when you sell. If you buy a home for $20,000 less than it’s worth, you’re forcing an appreciation of $20,000. Buying bank-foreclosed properties and contacting owners directly is a great way to score great real estate deals.
Add an extra bedroom
Turn a bonus room into an extra bedroom, as a three-bedroom home will always be worth more than a two-bedroom home. This can often be accomplished for a low price and add tens of thousands of dollars to the value of the home.
Increase your property’s curb appeal
Most investors who spend thousands remodeling a home neglect to do anything more than a quick outside paint job. Fresh paint is a great way to add value, but there are many other ways to add value. A manicured lawn with well-defined landscaping can help achieve higher rent or a quicker sale, both of which can make the value climb.
Raise the rent
When it comes to rentals, raising the rent can be the key to increasing property value. If your rents are low, a small increase can add significant value to your property. This is particularly true for multifamily properties, where raising rent just $25 per month per unit can add over a thousand dollars per year in extra income.
In addition to capitalizing on the physical ways you can increase the income in your investments, you can also adjust the fees. Are you charging for background checks, late-rent fees, missed maintenance, laundry facilities, paid parking missed maintenance appointments or parking violations?
Add a bathroom
If you’re remodeling a home that just has one bathroom, take note of where the plumbing is located and what extra space there is above or below it. You can often add a small half bath for several thousand dollars and add tens of thousands in value in the process.
Tear down walls
You can take down a wall, or half of one, in a matter hours and create a more open plan. This increases the desirability of a home and improves its value.