You have a property. You want to increase its value. Simple, really. Everyone wants to have real estate that's worth more than when they purchased it. However, increasing the value of your property isn't a simple process. You have to decide between low-cost and high-cost ways to add value.
Moreover, you have to decide between quick and long-term ways of adding value. In this post, we'll deal with the later - quick and low-cost ways to increase the value of your real estate.
Miscellaneous Low-cost Ways to Increase the Value of Your Property
As a real estate owner, there are lots of low-cost ways for boosting the appeal of your house. Although the following tips won't add tens of thousands of dollars to your real estate value if you don't do them, you'll never achieve the whole potential value of your real estate. You can do the following repairs without needing to hire any handyman or outside assistance. Yes, they are low-cost. But they can add significant value to your property and increase its visual appeal.
For starters, you should clean your property. When you make sure your real estate is clean, you get an instant ROI (Return on Investment) of your real estate. Of course, don't forget to clean the outside of your real estate, not just the inside. Any garbage, dirt, and weird odors you leave in your real estate definitely won't increase its value.
Next, paint your house. You won't believe what difference it makes when you put a fresh coat of paint on your real estate. It revives and brightens tired locations. If you're wondering about which color to choose, you should know that neutral colors have a universal appeal.
While on the subject of an appeal, you should add curb appeal. You only need to add a couple of strategically located plants or a new mailbox to increase the value of your property. Bonus tip - add specially designed, outdoor lights like those from Huda Lighting to increase the value even more. Some higher expenses here include a new walkway, driveway, siding, or adding decks.
One last thing. You should think about staging the property. For instance, de-clutter space and give each room a function to add value since lots of buyers aren't creative. When you adequately place furniture and its size, you'll also increase the value of your real estate.
Rent Less Used Places
Even if you're already at the maximum rental capacity, that still doesn't stand that you're receiving the maximal income from your real estate. Do you have any storage sheds, garage, broom close, or just a vacant land that you could rent out to improve your property profits?
Mini-storage is the hottest industry trend. In fact, it's a multimillion-dollar industry by itself. You likely have more space for renting than you realize. Just like when you raise your rents, additional income from renting less used places means more value.
Lower Your Costs
One of the fastest ways to improve the value of your property is to lower your costs. For example, if your real estate is large, but only you live there, downsizing will lower your housing costs enormously.
On the other hand, if you have loans with a high-interest rate but your liquid funds earn you a lower interest rate, you can pay off the loans to increase the value of your real estate. Of course, it's recommended that you consult your financial consultant on the best course of action when it comes to costs.
Tear Down Walls or Create the Ikea Bedroom
One of the hottest ways to increase the value of your property fast is to transform your "bonus room" into a bedroom. The best modifications include transforming two-bedroom houses into three-bedroom ones. You can often accomplish this for the price of Ikea wardrobe, hence the name. Nevertheless, this can still increase the value of your property by tens of thousands of dollars.
On the other hand, you can also tear down the walls of your house. Of course, as long as they aren't "load-bearing" walls. Even if they aren't. You'll have to ask a handyman for more information. Making bigger rooms or having that "open-concept" look can significantly increase the value of your real estate.
Don't Improve Too Much
Yes, you want to improve your real estate and raise its value. However, you also want to take care so that you don't improve too much for too much money. No one wants to spend lots of cash on a renovation that doesn't bring that much ROI. For instance, if you place high-tech appliances in real estate designed for a middle-class neighborhood that means you have over-improved.
Before you decide on a renovation, you should research a bit your area to explore how much the real estate is worth. And how much will it be worth after your renovation. This is called After-Repair-Value (ARV). Once you get a grip on this, you'll be able to deduct the price of your house to what you will get if you renovate it.
