Make sure you don't end up overpaying for your property - that's instant profit down the drain and will be impossible to gain back, especially if you are working on a tight budget. Do your research into local property prices, so you can snatch up the right home as soon as it becomes available.
You need to look for a house that you can get for a much lower price than a similar but better-looking house in a desirable area. Look out for things that can be updated easily such as crazy paint colours, old carpets that can be pulled up, old kitchens and dirty toilets. However, don't compromise on a solid foundation and structural integrity.
If the foundations of a house aren't solid, it not only effects the structure of the property but also the value. The costs to repair structural problems can be high, so it should be one of the first things you check before making your purchase. When viewing the house, check for any cracks on the exterior walls to start, a leaning chimney, or cracks in the bricks themselves. It's also a good idea to get a full structural survey and find a trusted construction expert to look into any possible issues or warning signs.
Time is money when it comes to flipping a house, and it's very easy to run over with both. The end goal is to make money, so once you've got your cost estimate, add at least 10% on top for contingencies. Every project has unexpected costs, and if you don't anticipate this, your profit will be reduced.
Planning is one of the most important stages when flipping a house. After developing a team of trusted tradespeople and securing your funding source you can create a timeline that goes alongside your budget. Start off with building work and then move onto the interiors once it's finished. Your contractors will also be able to give you an idea of what needs to be done when. Don't forget to factor in delivery delays - with long waits for supplies you don't want your contractor waiting around.
There's a fine line between not doing enough and going too far. You can miss out on buyers without certain upgrades but all these improvements will add up. Try to incorporate any new smart technology carefully and pick wisely. Expensive integrated systems such as smart lighting are unlikely to give you a big return but certain extras are almost vital. Ensure you've got superfast broadband, lots of power points and USB charging points, which are cheaper to install and will increase your earnings.
It's all too easy for a quick house flip to turn into a major home renovation. However much you want to change the layout of the home, serious structural changes like moving staircases should always be carried out by your team of tradespeople. Otherwise, you could end up with a huge repair project on your hands that adds extra cost. Also, think about which improvements will add the most value to your home such as extra bedrooms, garage conversions and extending kitchens or living areas.
Generally, buyers are more impressed with how much usable living space they have, rather than the number of rooms. Knocking down a wall will help to create a bright, open-plan space and give you one impressive room, rather than two underwhelming ones, whilst also adding to the value of the home. However, make sure not to get rid of all the walls in the living space. In a post-pandemic world, buyers need more closed off spaces particularly in entryways and for homeworking so a broken plan layout may be the best of both worlds.
Over improving a property won't give you the desired return on investment you are hoping for, so treat the project as a business and not your dream home renovation. Upgrading the boiler, new plumbing and electrical wiring are all essential for any home, however, these sorts of renovations won't add much value, so if they are already safe and in a good condition, save your money.
Converting the loft into an extra bedroom is a great way to put redundant space to use, as well as adding value to your property. While renovating the attic to add an extra bedroom or home office is no cheap or easy task, it can add up to 15% to the value of a home.
If you are looking to create a home that's going to make you money, it's important to ensure that the home has a consistent design throughout. Even bathrooms like this, which are in pretty good shape, may need a bit of an update in comparison to the rest of the house or they risk standing out like a sore thumb. Whether you paint the tiles, replace the taps or just add fresh towels and toiletries, a few small cosmetic updates can make all the difference.
Adding a few higher-end features at a lower price range will allow you to market the house for a higher price and earn a bigger profit. For example, when updating the kitchen, add a wall-mounted range hood above the hob like this, hang pendant lights above a kitchen island and include a wine rack into your kitchen design. These little extras will go a long way to seducing potential buyers.
As tempting as it is to skip the prep work, this is a huge mistake. Lumps and wobbly edges are a no-go for today's savvy home buyers. Unless you're hiring a painter and decorator you'll need to fill, sand, clean and prime your walls and woodwork to get a flawless finish before you pick up your paint roller. There are some DIY hacks to make this job easier, including lining your paint tray with a plastic bag before you pour in the paint. When you are finished, simply remove the bag and you won't have to scrub the tray.
A beautiful floor can sell a room and these don't have to be expensive. From ceramic tiles in beautiful patterns to bold and budget vinyl, the key is to make it look fresh and enhance the decor. Think about your buyers before you choose the floor covering. A large family home needs hardwearing surfaces that are easy to clean whereas the potential buyer of a two-bedroom apartment is likely to be younger and may appreciate a luxurious carpet or more on-trend patterns.
New lighting can take your project to the next level with minimal time and money. These kitchen pendants are the perfect quick fix. Crafted from IKEA OTTAVA pendant lamps by Kojo Designs, they've been spray painted to make the perfect unique statement in the kitchen.
According to research from Tap Warehouse, the right kitchen and bathroom makeover could increase the value of your house by 10%. Two of the most important rooms for potential buyers, it's worth putting time and care into improving these spaces and making them as desirable as possible without blowing the budget.
When it comes to bathrooms, there are some things that are worth splashing out while others could be money down the drain. Many retailers offer affordable entry-level packages for a new basic white suite freeing up budget for glazing, lighting and fixtures that will give your bathroom a high-end look. If the house only has one or two bathrooms, you would be wiser to split your budget to add an ensuite or downstairs toilet as these are far more likely to add to the asking price. It's also worth paying for professional installation to make sure everything works properly.
In the kitchen it's worth spending a bit more on mid-range integrated appliances such as an oven and dishwasher that is streamlined to give your kitchen a much more expensive look. Beautiful countertops and a must-have kitchen island could swing a sale but save on basic kitchen units and a sink. Spend more on upgrading kitchen cabinet doors, new handles, stylish statement lighting or adding access to the garden with an indoor-outdoor dining area.
Sometimes, it's a good idea to upcycle and reuse parts of the house rather than scrap them completely. If some of the tiles are looking a little tired, instead of the messy job of lifting them up and laying down new ones, you can simply paint over the old ones. For an extra boost, you can even use a stencil like nluv Studio has done here. It'll save you money and breathe new life into a tired space.
Take advantage of any empty space in the home and add extra storage. This works especially well in smaller properties, where buyers may be hesitant due to lack of space. Under the stairs has huge potential and is often inaccessible or left empty. Take advantage of it by installing pull-out drawers or even cupboards like this design.
After spending a huge chunk of your budget focusing on the inside of the house, it's important to also consider the exterior. Make sure your home has kerb appeal, even if it's just giving it a fresh lick of paint and make the most of any outdoor space.
Adding off-street parking can add an estimated 3% increase to the value of a home according to Go Compare. A driveway, garage or dedicated parking space is an important feature of a property with 56% of people saying lack of parking would stop them buying a property.
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