The whole point of buying investment real estate is to sell it or rent it out, eventually making much more money than you paid for it.
The real trick is to raise the value of the house without paying too much and thus eliminating your profit margin, or spending so much effort and time that you lose other opportunities to make money. What follows are some quick, cost-effective ways to raise property values.
Begin with the most obvious: make the house look more pleasant, new, and sturdy from the outside. A new coat of paint can do wonders. Give the house some curb appeal by brightening it up with a few flowering plants, either potted on the porch or neatly replanted in the yard.
Now let's discuss decorating the inside. Notice how many homes up for sale look unlived-in, despite having some (obviously unused) furniture and fixtures in them? This is not a flaw in the decoration; it is deliberate. If a house looks like it is being or has just been used by an actual resident, a buyer might feel like an intruder, particularly if the house is a foreclosure or REO property. Light colors and a pleasant, but rather generic atmosphere are your guidelines.
Furthermore, make sure to conduct important repairs. Clogged plumbing and malfunctioning ventilation can keep the value of a house low. While you are at it, you might even make some additions: think of them as “bonuses” to attract customers. Try to improve the house’s insulation, for instance. Nowadays, people often want to conserve energy on heating and cooling their residences, both for financial and environmentalist reasons. Make your property stand out from the rest by marketing it as “green” real estate.
Furthermore, do research about future development projects in the area. After all, if somebody wants to live in that house long-term, the future of the area is of concern to them. If you find out about new schools, shopping centers, etc. that will soon be constructed nearby, you can more easily convince buyers that they are investing wisely.
Try these tips in order to make great returns on your investment!
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