4 Tips to Increase the Value of Your Real Estate Investment
The price of real estate investments are highly dependent on a lot of factors. Over the years, the price of real estate fluctuates due to various reasons, whether it is economic factors or supply and demand. With more buyers on the hunt for a good deal, investors have to work harder to ensure that the value of their property remains both competitive and profitable. With that being said, let’s discuss four tips that can help raise the value of your real estate investments.
Add an Extra Bathroom
Adding a new bathroom can instantly raise the value of your real estate investment. When flipping or remodeling a home, be sure to take note of the plumbing and if there’s extra space to add a bathroom. SFGate outlines how a new bathroom returns about 60 percent of its cost at sale time. While this is an attractive proposition, you need to consider the short-term and long-term considerations. If you are planning to sell in the long term than this is a good option, however with a medium-sized bathroom potentially costing you up to $25,000 you may lose money in the short term.
Prioritize Energy Efficiency
As more and more people understand that we need to live sustainably, real estate investments that take steps to become more energy efficient will have a faster selling rate than properties that don’t. There are several ways to become more energy efficient to attract buyers. HomeServe lists some energy saving initiatives such as installing a smart thermostat and fitting energy-efficient light bulbs. By including these in your sales pitch you will appeal to a much wider target market, which will allow you to increase your sales price.
Upgrade the Front Lawn
When remodeling your real estate investment, you should never forget that the outside needs updating too. While a quick paint job might seem more than enough, this doesn’t do a lot to raise the overall price of your home. That’s why if you want to add value to your real estate investment, it pays to go above and beyond by sprucing up your property’s curb appeal. DIY Networks’ list of easy curb upgrades includes adding landscape lighting, upgrading a porch mailbox, and planting a tree. Not only will buyers be attracted to a neat front and back garden, but it will also demonstrate that the property is well looked after.
Aim to Reduce Turnover
If you are a landlord, quick tenant turnover is bad for any investment property. Aside from losing rental income, having to constantly put your investment property on the market will eat up your precious time, resources, and personal finances. In this regard, it’s important to ensure that your tenant signs long-term leases to reduce tenant turnover. The longer they stay the more money you will earn, which will automatically make the home more valuable when you come to sell.
All in all, increasing the value of your property is not that difficult. If you want to make the most out of your real estate investments, be sure to heed the tips we’ve listed above. For more real estate investment articles, be sure to check our other posts here on Daily Investing Tips.