When evaluating the profitability of a potential property, a seasoned fix and flip investor looks well beyond the cosmetic features of the property and quickly assesses the cost of essential major repair work. While this is a good starting point for evaluating an investment property, thinking only in terms of major structural repair makes it easy to fall into the trap of ignoring more aesthetic concerns. After all, if there is a major plumbing issue that has rotted out the floor in the bathroom, you can hardly be blamed for not noticing the shower curtain design, right?
However, it turns out that you should be noticing that shower curtain after all. Taking the step of home staging helps increase profits by a considerable margin when flipping your investment property. After you have repaired any structural issues, it is a wise practice to give careful consideration to home staging to help you close the deal with your potential buyers.
The beauty of home staging is that it requires a minimal investment to make a major impact on profitability. Buyers are more naturally drawn to a home with some personality. The art of home staging allows your buyer to picture himself/herself actually living in the home. And once that picture becomes clear in the mind of your buyer, a solid offer to purchase is not far behind.
Fix and flip investors understand the importance of keeping an eye on the bottom line. With one eye on that line and one eye on making your investment more appealing to the right buyer, you can benefit from some cost-effective home staging tips and tricks.
It is important to look at your investment property in the same way that a potential buyer will. Identify what makes a buyer salivate and what leaves him/her cold. For instance, research indicates that the top two rooms that make or break a deal for most potential home buyers are the kitchen and the bathroom. So what can you do to increase buyer interest in these two rooms?
Since the kitchen is the gathering place for most families, it needs to be especially appealing to your buyer. If the kitchen lacks a good source of natural light, consider adding windows if the shape and location of the room allows for it. If that is not feasible, choosing a warm, light paint shade for the walls is a cost-effective way to brighten the room. Add a dash of color with a beautifully detailed backsplash accent that complements the color and style of the cabinets and countertops. Something as simple as a small flower arrangement or fruit bowl can invite prospective buyers to come in and make themselves at home. Hanging an attractive dish towel on the range door handle is a very inexpensive way to catch the eye of the buyer and create an inviting environment.
Investing in new hardware for bathroom sinks need not be expensive. However, it can greatly add to the appeal of the bathroom by giving it a modern feel. Choosing a shower curtain with a beautiful design is also very cost-effective, while creating an atmosphere of luxury and comfort. If the shower has a glass enclosure, the same effect can be achieved with the addition of a few well-chosen towels. Small touches like decorative soaps add color and warmth without great additional cost.
While some may think that an empty house has more appeal because a potential buyer can imagine whatever he/she wants to fill up the space, realtors report that at least some degree of home staging greatly impacts the profitability of the sale.
The trick seems to be in the balance of the two concepts. While having a blank enough slate for a buyer to imagine putting his/her own touches on the house is good, you do not want the home to appear barren of all personality. Small, thoughtful touches throughout the house will touch the emotion of the buyer, and prompt a generous offer more quickly.
For more information about fix and flip strategies, please contact us. As hard money lenders with years of experience, we can help you find the tools for successful investing today.
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