Homeowners and real estate investors are constantly looking for ways to add value to their home. Increased value means a better selling price for the homeowner and profit for the investor. How do you add value to your property? Here are three ways to easily add value to your property.
Repairs and Upgrades
This is how many real estate investors or “flippers” make their money. They buy distresses properties in need of work, do the repairs along with some cosmetic upgrades and then sell the property to a new buyer. You can do things like add livable space to the home by finishing a basement. You can do upgrades to the kitchens and bathrooms. Many investors find houses with odd floor plans and change it to conform to standards of today. There are really endless possibilities here and what you do will really depend on the budget that you have. Here is some more info on what upgrade bring in the best returns.
In this scenario you are effectively being the bank and holding the mortgage on a property that you are selling. Profit will come in over time but it can be a great way to increase the selling price, charge interest and defer tax gains. If you have a property for sale in a buyer’s market you can increase the pool of buyers by offering it to people who don’t qualify for a traditional mortgage. You can command a better price by giving them a chance at home ownership that would normally not be available to them.
Turning Your Property into a Timeshare
In this scenario you get to sell your property to multiple buyers. This is more common in resort towns or bigger, expensive cities like New York and San Francisco where real estate prices are well above the norm. If you are lucky enough to live in an area where tourism drives the economy then turning your property into a time share is a viable option. Another scenario to consider if you aren’t pressed to sell immediately and you live in a busy metropolitan area is using your property for a short term rental. You can post ads on Craigslist or list it on AirBNB. Short term rentals command a much higher price and you can earn a pretty penny. When you sell you are not only selling a home but a thriving business.