9 Reasons Why Renovating Your Property Increases Value

9 Reasons Why Renovating Your Property Increases Value

In real estate, renovating your property isn’t just about aesthetic enhancements or modernizing interiors; it’s an investment strategy with the potential to significantly boost the property’s value. Renovation projects, when executed thoughtfully, can yield impressive returns on investment (ROI) and elevate the overall appeal of a property in the eyes of potential buyers or investors. Here are nine compelling reasons why renovating your property can be a savvy financial move.

  1. Enhanced Curb Appeal: First impressions matter, and a well-maintained exterior can immediately captivate prospective buyers or investors. Renovations such as landscaping, exterior painting, or updating the front facade can enhance curb appeal, making your property stand out in a competitive market.
  2. Increased Market Value: Renovations that improve the functionality, aesthetics, or structural integrity of a property often lead to an increase in its market value. Upgrading outdated features, such as kitchen appliances, bathroom fixtures, or flooring, can attract buyers willing to pay a premium for modern amenities.
  3. Competitive Advantage: In a saturated real estate market, renovated properties tend to command higher prices and attract more interest buyers compared to their unrenovated counterparts. Renovations differentiate your property from others in the area, giving you a competitive edge and maximizing your potential for a profitable sale or rental.
  4. Higher Rental Income: For property investors, renovated properties can justify higher rental rates. Tenants are typically willing to pay more for upgraded living spaces with modern conveniences and improved functionality. Renovations that enhance energy efficiency or add desirable features can justify higher rental income and attract quality tenants.
  5. Reduced Time on the Market: Renovated properties often spend less time on the market compared to those in need of updates or repairs. A well-executed renovation can make your property more attractive to buyers or renters, resulting in quicker transactions and minimizing holding costs.
  6. Future-Proofing Investment: Investing in renovations allows you to future-proof your property by addressing maintenance issues and incorporating durable materials or technologies. By proactively addressing potential concerns, such as plumbing or electrical systems, you mitigate the risk of costly repairs down the line and protect your investment.
  7. Expanded Market Reach: Renovations can broaden the appeal of your property to a wider audience of potential buyers and investors. Features like open-concept layouts, updated appliances, or sustainable design elements can attract interested buyers, maximizing your property’s market reach and resale potential.
  8. Positive Return on Investment (ROI): While renovations require upfront investment, they often yield a positive ROI, especially when strategic upgrades are made. Assessing the cost-benefit ratio of renovation projects and focusing on improvements that offer the highest ROI ensures that your investment translates into tangible value appreciation.
  9. Adaptation to Changing Lifestyle Trends: Renovations offer an opportunity to adapt your property to evolving lifestyle trends and preferences. As living habits shift, updating your property to align with current trends can ensure its relevance and appeal to prospective buyers or investors. Whether it’s creating versatile multi-functional spaces or incorporating home office setups, staying attuned to changing lifestyle preferences through renovations positions your property as desirable and future-ready in the real estate market.
home office

What Property Renovations Should I Focus On First?

We could all assume that property renovations will help with ROI for property value, but where to start? Let’s go over the cost of the renovation compared to the return to see what you want to upgrade in your home first.

Ceilings & Flooring Make Big Impacts with Renovations

Ceilings, often referred to as the “fifth wall,” offer untapped potential for creativity and sophistication. Beyond removing popcorn or a simple coat of paint, ceiling treatments such as crown molding, coffered ceilings, or tray ceilings can add architectural interest and elevate the perceived height of a room. Incorporating decorative ceiling tiles or exposed beams can infuse character and charm into any space, creating a focal point that draws the eye upward and adds visual intrigue.

Similarly, flooring serves as the foundation of a room’s design, setting the tone for the entire space. Whether opting for hardwood, tile, laminate, or carpet, the choice of flooring material significantly impacts the style, functionality, and perceived value of a home. High-quality flooring that seamlessly transitions between rooms enhances flow and cohesion, creating a sense of unity and spaciousness. Additionally, investing in durable, low-maintenance flooring options ensures longevity and reduces the need for frequent replacements, providing long-term value for homeowners.

What are the Average Costs for Ceiling & Flooring Renovations in 2024?

The average cost for ceiling upgrades ranges from $300-$600 per 12×12 room. Depending on the type of upgrades required, this can vary.

The average cost of flooring upgrades is about $3,000 per 500 sq. ft., but this ranges drastically depending on material and cost of labor. Sometimes it’s as simple as removing outdated carpet to find you have hardwood flooring underneath!

Lighting Upgrades for a Cost-Efficient Return

A very cost-effective renovation is upgrading your lighting, not only is it low in cost as compared to larger renovations, it will immediately make the design feel more modern and welcoming. Recessed lighting and intriguing light fixtures will change the ambiance of the entire property, and if you switch to energy-efficient or smart technology, it will attract investors more quickly than outdated light fixtures.

What’s the Cost on Average to Replace Light Fixtures in 2024?

The cost on average to replace light fixtures is anywhere from $700 – $3,000, but depends greatly on how much construction is involved and what fixtures you’re installing.

Bathroom & Kitchen Renovations: High-Value with High-Costs

While bathroom and kitchen renovations may involve higher upfront costs, their potential for high returns and numerous benefits make them worthwhile investments for homeowners seeking to maximize the value and appeal of their properties. With careful planning, budgeting, and strategic decision-making, these projects can deliver lasting value and satisfaction for years to come.

How Much Are Bathroom & Kitchen Renovations on Average?

The most costly part of a Bathroom remodel is going to be the plumbing and the flooring. The average price varies greatly, but you can expect to pay an average of about $6,000.

Kitchens are a bit more tricky because now we’re talking about renovations plus appliances. Kitchen renovations can be the highest cost in any property, ranging from $10,000 – $30,000. The unique factor to think about in a kitchen reno is the cost of custom cabinetry, which can quickly take an average cost renovation and amplify it greatly.

 

renovated bathroom

Are You Struggling With Your Property Improvement Goals?

Sometimes understanding what you should and should not be focused on with property renovations can be daunting. Should you spend thousands of dollars upgrading, or would it be better for you to sell your property as is? If you want answers to questions like these, start with our property estimate tool. This will give you a great starting point to see if you like the number you’re at, or if it would benefit you to make some renovations.

How Do I Know What Moves to Make When Renovating Or Selling My Property?

Speaking with a professional real estate agent is your best bet for understanding the market conditions and your next moves when it comes to the ROI of your property. A real estate agent can help you with inside information such as the best times to renovate, what you need to renovate, and what can be on hold for the buyer.

We have real estate agents who can help you make important decisions concerning your property’s value, contact us today for expert guidance, and find out why our clients call it the Pointe South difference.

9 Expert Tips for Selling Your Property

9 Expert Tips for Selling Your Property

Selling Your Property. 

Whether you’re a seasoned investor or it’s your first rodeo, selling your property can be a daunting task. We know there are a lot of factors to consider, from market conditions to curb appeal. Let’s go over the best practices for getting the best ROI when selling your property without the headache.

1. Curb Appeal Catches Attention

First impressions are everything, so understanding the details important to curb appeal will help you when selling your property. A quick touch-up of paint, decluttering your yard, pressure washing your driveway, updating your mailbox digits, and landscaping can all enhance your curb appeal easily and affordably.

Spring is considered the best time of year to sell your home, so piggybacking off the fact that most people will be looking to buy in the Spring means you can enhance your yard with pretty flowers and green grass to make the property stand out.

2. Remove Personal Items & Declutter

Before you start prepping marketing materials and getting photographs of your property, you’ll want to do a clean sweep so potential buyers can picture themselves moving in. Selling your property starts with making your home approachable to buyers and potential investors, so removing family photos, knick-knacks, toiletries, and other items from your space will allow for a clean slate.

You’ll want to think of this as removing your thumbprint for future owners to have space to add their own. We recommend shooting photos of your house just like your photographer would so you can get a concise view of what it will look like to future owners. No need to buy fancy equipment, just use your cell phone and capture some quick shots to get an idea of what stands out as clearly yours.

3. Staging Your Property

Selling your property is all about creating an ambiance that welcomes potential buyers and investors. Whether they’re looking for a property to call home or a rental investment, staging can help buyers visualize the potential of the space and can lead to quicker and more lucrative offers. Light bulbs in decorative lamps with matching tones will ensure your photographs look concise.

Accessories that add to the decor such as table settings at dining tables, and nice linens on beds are all good tips for staging your property. Just make sure you are adding to the decor and making the property feel homey and attractive. When you work with a professional real estate agent, they’ll have preferred staging experts who can help make your home look like a stunner.

Staging Your Home to Sell Your Property

4. Professional Photography & Marketing Materials

Now that you’ve ramped up your curb appeal, removed personal items & clutter, and staged your property, it’s time to get your marketing materials lined up for selling your property quickly. The more photographs & videos you can get of the space the better, as people want to picture themselves walking through. Many buyers are from out of town and may not be able to do an in-person walk-through at first. To help entice them, we want them to feel they are right there on the property.

When hiring your photographer, consider factors such as drone videos as well, as you may want exceptional exterior shots of the property such as aerial views. Marketing materials are everything from social media posts to postcards and your MLS listing. When working with a real estate agent, they’ll have access to all of these tools and more, so finding a great agent can help save you a lot of hassle.

5. Create a Compelling Listing Description

Now that you have the bulk of your marketing materials, it’s time to write your description to catch potential buyers’ attention. Selling your property involves describing the factors that make your home stand out. Identify and highlight the unique features and selling points of your property. Whether it’s a spacious backyard, upgraded kitchen, or stunning view, make sure these features stand out in your listing description. Highlighting these factors will make potential buyers say, “Wow, that’s the property for me!”

6. Price it Right

Setting the price too high will have your property sitting on the market for too long, but setting the price too low will have you second-guessing yourself if a quick sale is worth the lost revenue. Finding that Goldilocks zone is key, so how do you determine your sale price? Researching market conditions, comparable properties that have sold, and determining the condition of your property is vital to understanding how to sell your property for the correct price.

You can also hire an appraiser to help you determine the correct price when selling your property. Do a good amount of research to find an appraiser you can trust, and make sure to get a second opinion, as some appraisers will swing very high or low in their pricing strategies.

Seraching for a home online

7. Maximize Online Exposure

Most buyers start their search online, so make sure your listing is featured on popular real estate websites and social media platforms. There are a plethora of real estate listing sites, so if you have an agent you’re working with, they can ensure that your property is in the spotlight on all the major sites.

The other benefit of hiring an agent is they’ll make sure your marketing is on all social platforms and outdoor advertisements they have access to. When shopping for an agent, we recommend asking them what all avenues they’ll be displaying your property, to ensure you’re getting the most exposure possible.

8. Flexible Showing Times & Virtual Tours

When selling your property, making it easy for potential buyers to tour your home is a must. Be accommodating of their schedules, and offer virtual tours for your out-of-town buyers. Open houses are also a great way to get foot traffic to the property and entice buyers. Making it a simple process increases the likelihood of receiving offers and making a quick sale. The great thing about having a real estate agent is they can set up the showings for you and create a virtual tour. This can help a lot when selling your property to make the process smooth and simple.

9. Stay Informed and Adapt

Market trends and economic factors are a huge part of selling your property. Be prepared to adapt your strategy accordingly to stay competitive in the market. Understanding local and national trends will help you with the sale of your property, and you’ll know if it’s the best time to get the highest ROI. We know that staying ahead of the market can be a burden, so consider working with an agent with expert knowledge to make sure you’re on the right track.

In conclusion, whether you decide to sell your property on your own or with an agent, these tips will help you sell like a pro. The real estate market is ramping back up in 2024, and now is a great time to consider selling your property. Check out our property estimate tool to see what to expect for prices in your area.

Home Estimate Tool

Selling Your Property With Expert Real Estate Agents

If this guide has helped you see the benefits of working with an agent, we’d love to help you sell your property. We have a wealth of knowledge in sales and real estate and can help you prep & market your home with amazing tools at our disposal. From staging to closing, we know the market and what helps you stand out to potential buyers. Contact us today!