Renovating for Profit- Here's What You Need to Consider
Home renovations can be daunting but, if done properly, they should be a rewarding undertaking. Whether you flip houses to earn an income, rent out your property and hope to earn more, or want to renovate your home for your own comfort and enjoyment, the end goal of home renovations is to add value.
After all the hard work, stress, and myriad decisions involved in your renovation are passed, you want to look at your finished product and see a noticeable fiscal gain. You may see the rewards right away, such as if you renovate a house and are able to sell it at a higher market price; or the rewards may take time to reveal themselves, such as an incremental price raise in rent which eventually covers the cost of a renovation.
Regardless, home renovations add emotional and monetary value if they are executed properly. If you're contemplating a home renovation, consider these tips for success:
Do your research and make a solid plan
When you're eagerly browsing through home decor magazines and dreaming of your new modern chic house, it's easy to want to jump right in and start tearing down walls. Don't do it without a thorough plan. Unfinished renovations are a big red flag for buyers. Not only is it an eyesore, but most buyers are reticent to pick up where you left off in your project. Make sure you determine how much work needs to be done to achieve the ultimate value. Should you renovate the whole house, or just a couple of spaces?
Compare your house with others in the neighbourhood and add value which jibes with your local area. Agents can be helpful in this regard, as they are knowledgeable about listing prices, how much houses typically go for, and what buyers are looking for in a house in your neighbourhood.
Make a good first impression
Does the outside of your house give out a good first impression which makes potential buyers excited to see what's coming next? Try to achieve a tidy, fresh look. This can be accomplished with a new coat of paint, clean windows, and an orderly yard. Consider putting in a fence, or repainting it if you already have one. These are simple and cheap changes which give the impression that the inside of the house is also well-maintained.
Set a detailed budget
Sticking to your budget ensures that you'll complete your project according to your fondest wishes, and also guarantees you'll gain from the value you invested. Some professional renovators recommend you budget first for each room, and then for each project. A common rule of thumb is to spend no more than 10% of your total house value on renovations.
This keeps you from spending too much without receiving a comparative gain in value. Another helpful rule is to allocate 20% of the total renovation budget for the kitchen and bathrooms. These areas stand out to buyers, and you want them confident that they don't have to worry about plumbing issues, gas leaks, mold, or faulty appliances. Don't forget to also set aside an additional 10% for contingency. That will save you stress when the inevitable surprises and mishaps occur during the course of your renovation.
Simplicity is elegant
For most of your spaces, simplicity should be your aim. Buyers are attracted to bright, open spaces. This can easily be accomplished by a fresh coat of neutral paint and new flooring in the living room and bedrooms. Inexpensive cosmetic changes can also make a world of difference to modernise a home. Install new light fixtures and door handles.
Consider upgrading your windows with plantation shutters, a timeless classic window treatment which dresses up a room while adding function. Plantation shutters can also be used as adjustable sliding doors to open up spaces between rooms or allow privacy.
DIY and professionals: divvy up the tasks
Determine which tasks you can complete yourself and which require a professional. If you feel out of your depth, don't risk making massive mistakes, or your mess will have to be cleaned up before you start all over again. Especially for structural changes, it can be helpful to rely on referrals and compare quotes from different contractors.
A large part of your cost will be labour, so make sure you trust your team. Cosmetic changes like plantation shutters, light fixtures, and paint are affordable, and will earn a big reward in the appearance and value of your home.
Modern can help transform your renovated home into a timeless classic with new plantation shutters. Contact Modern today to learn more.
Renovating for profit - consider plantation shutters
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