- Investing in real estate improvements is a great way to add value to a property and increase investor profits.
- Consider energy efficiency when making real estate improvements. Upgrades such as high-efficiency windows can significantly boost property value.
- Modernizing the critical features of the home can make it more attractive to potential buyers. Major renovation projects like kitchen and bathroom renovations can also net significant profits.
- Home automation systems are becoming increasingly popular with homebuyers and should be considered when making real estate improvements.
Real estate improvements are an excellent way for investors to boost the value of a property and increase their profits. Property values continue to rise, making it more profitable for real estate investors to make improvements that attract buyers. Building amenities can add significant value to a property and make it more attractive to potential buyers.
Statistics show that investing in real estate improvements is an excellent strategy for increasing profits. According to the National Association of Realtors, modifications made by sellers before a sale can result in higher sale prices compared with properties without such improvements.
The organization also found that sellers who spent $5,000 or less on home improvement projects recouped an average of 77% at sale time; those who invested between $5,000 and $10,000 earned back almost 71%; and those who spent over $10,000 saw only 65%.
However, you might not know which improvements to pursue when boosting the value of your property. Here are some essential amenities to consider when making real estate improvements:
Energy Efficiency
Energy efficiency is an essential factor for real estate investors to consider when making improvements to their property. By making their homes more energy efficient, they can save money on their utility bills, increase the property’s value, and make it more attractive to potential buyers.
By investing in energy-efficient upgrades such as high-efficiency windows, insulation, and airtight construction, homeowners can make their homes more comfortable while significantly reducing heating and cooling expenses.
According to the U.S. Department of Energy, such energy-saving measures can reduce energy costs by up to 20%. Additionally, these improvements often result in higher appraised values for the property due to increased comfort and reduced energy costs.
Installing solar panels is another great way for investors to take advantage of renewable energy sources while increasing the value of their homes. Solar power is becoming increasingly popular with homebuyers, and installing solar panels can add up to $15,000 or more in value in some areas.
Moreover, various government incentives can help offset the cost of installing solar panels and make them even more affordable for homeowners looking for an intelligent investment.
Modernization of Home Features
Outdated features of a home can make it more difficult to attract buyers and significantly reduce a property’s value. Therefore, investors need to consider modernizing critical elements of their homes when making real estate improvements.
Minor updates such as repainting walls, refinishing cabinets, replacing outdated light fixtures, or installing new flooring can make a significant difference and help create an impressive interior that will appeal to potential buyers.
However, there are significant renovations that can also net substantial profits. Here are a few of them:
Kitchen renovations
A fully-renovated kitchen is an excellent way to add value to a home. Installing new cabinetry, countertops, and appliances can make the property more attractive and appealing to buyers.
Bathroom renovations
Bathroom renovations are also significant when making real estate improvements as they can help increase the value of the property significantly. Installing energy-efficient fixtures such as water-saving showerheads, dual-flush toilets, and low-flow faucets can substantially reduce utility bills while also adding significant value to a home.
Home automation systems
Modern home designs include automation systems such as smart thermostats, security systems, and automated lighting. Installing these systems can help make a home more attractive to buyers looking for an energy-efficient and secure property.
Entertainment features
Nobody wants to buy a house and then invest more money installing entertainment features. Therefore, investors must consider adding entertainment options when making real estate improvements. Installing a home theater room or an entertainment system can help make the property more attractive to buyers.
Outdoor Amenity Installation
A property’s curb appeal will greatly influence potential buyers. Therefore, investors should consider making outdoor improvements when making real estate improvements. Installing a patio or deck, landscaping the lawn, and creating outdoor living spaces can enhance the property’s appeal and make it more attractive to buyers.
If you want to go all out, you can also invest in a glass conservatory. The outdoor feature can be used for entertaining year-round and will significantly increase the value of a property. Moreover, the glass conservatory can be a flexible and luxurious addition to a home and can be used as an office, gym, playroom, or even a greenhouse.
Final Thoughts
Real estate improvements can help investors increase the value of a property and make it more attractive to potential buyers. By investing in energy-efficient measures, modernizing critical features of the home, and installing entertainment systems and outdoor amenities, they can add significant value to their investment while saving money on utility bills. Investing in real estate improvements is an excellent way for investors to maximize their profits and attract more buyers.
