For real estate investors in the flipping market, home renovations are a pricey but essential cost to not only enhance a property’s resale value, but also its overall profit. Whether you’re new to real estate investing or a seasoned flipper, the key to house flipping success is finding ways to improve a home that won’t break the bank and equate to a sizable enough return.
In real estate, the wants and needs of homebuyers are constantly evolving. Staying in the know about the latest consumer desires helps investors identify and prioritize the right renovations to entice buyers and increase property value.
Below is a list of the latest 5 house renovation ideas that will skyrocket your property’s resale value without breaking the bank in 2024:
1. Update the Color Scheme
If you’re wondering how to renovate a house on a budget, DIY rehab projects are a great start. No DIY home renovation project is more popular and relatively affordable than painting. Updating the color schemes of rooms is a great house renovation idea for the interior, and is not only budget-friendly but can completely rejuvenate an older property. And, with the right strategic approach, can also significantly boost a home’s value.
While neutral colors like white and off-white remain the go-to colors for resale investors, Zillow’s 2023 paint color analysis paints a slightly darker perspective–pun intended. Dark grays have quickly become the trendy interior design color desired by millennial and Gen Z homebuyers–while garnering a higher price tag.
Darker grays, like charcoal gray, in the kitchen have sold for an estimated $2,512 more than similar homes. Similarly, a cooler stormy gray brings a modern feel to your living room while increasing offers by as much as $1,755.
However, there is such a thing as too much gray. For bathrooms or hallways, implement lighter earthy tones, like terra-cotta brown–2023’s color of the year–to enhance resale values by more than $1,600.
2. Install New Hardware
Looking to further amplify the aesthetics of an older property? Another DIY-friendly renovation idea for old homes is to upgrade the hardware around the house. Although installing new hardware is one of the least expensive renovation hacks, it has one of the highest ROIs and is a quick way to modernize the feel of a home.
Investors should focus on hinges, door knobs, drawer and cabinet pulls, outlet covers, lighting, and faucets. The costs of most of these materials are minimal and merely require the ability to wield a screwdriver. Find stylish and trendy hardware that compliments the color scheme and redesigns of the home, and watch your property’s value and buyer interest skyrocket.
3. Enhance the Landscape
A unique and often affordable house renovation idea for the exterior of a fix and flip property is to spruce up the landscape. A 2018 study found that a well-landscaped home can increase resale value between 5.5 – 12.7% of the home’s value. That translates to a $28,000 increase on average.
The top ROI projects include:
Planting mature trees: Planting two to four large specimen trees around a property’s landscape entices today’s green consumer and has a high ROI.
Landscape Maintenance: Most lawn maintenance projects can be low-cost and DIY-friendly (lawn mowing, weeding, shrub, and tree trimming) while bringing a breath of fresh air to the exterior visuals of older properties.
Front Walkway Redesign: Front yard pathways create visual appeal to your home and potential buyers. Travertine or concrete pavers, or a flagstone walkway, look great, are low maintenance, and are inexpensive to install.
Landscape Lighting: Landscape lighting is another low-cost addition that enhances your home’s safety, security, and overall appeal.
Creating a Firepit: Like front walk-ways, firepit stones are reasonably affordable, and the maintenance is minimal–but consumers love them!
4. Replace the Entry Door and Old Windows
A slightly more expensive, but necessary, home renovation tip is to update or replace your entry door and older windows. These days, sustainability is top of mind for consumers, and the performance of windows and entry doors are often heavily scrutinized during the realty shopping process. While the costs may be hefty upfront, with the right financing partner, you can recover most of the costs of window and door replacement while reaping all of its benefits on the market.
Entry door replacement usually costs north of $2,000, but, on average, generates over a 100% ROI during resale. Similarly, average window replacement costs between $20,000 to $24,000 but yields a more than 60% ROI.
The addition of new entry doors and windows will significantly decrease energy costs while enhancing the aesthetics of the property’s exterior and interior, nudging homebuyers closer to saying “yes.”
5. Redesign the Kitchen
Investors looking for house renovation ideas to skyrocket resale values should start in the kitchen. Kitchen remodels not only elicit a higher ROI but notably influence buyer decisions.
For budget-conscious investors, focus on less expensive upgrades, like:
- New pendant lighting over the kitchen island
- New cabinet hardware
- Unique backsplash
- Installing Eco-friendly appliances
- Updated color design
While these renovations can still run you around $25,000, minor kitchen remodels average a 71.2% ROI. They quickly improve the overall look of the kitchen and help align it with the eco-friendly needs of today’s consumers.
For savvy investors with reliable funding, major kitchen remodels (hardwood flooring, new cabinetry, open concept) can cost between $80,000 and $160,000. However, these renovations are likely to recoup more than 50% of their investment while significantly increasing resale value and sales potential.
Finance of America Commercial: Reliable & Flexible Bridge Financing
Real estate investors who want to skyrocket resale value and meet the needs of today’s homebuyers, but lack the funding, can turn to Finance of America Commercial’s fast and flexible bridge loan options. We are the most reliable fix and flip financing source for real estate investors looking to purchase, renovate, and sell homes quickly.
Our fix and flip terms include:
- Up to 100% of rehab budget financing
- Up to 90% LTC
- Up to 75% ARLTV
Finance of America Commercial’s fix and flip financing provides investors with the agility and accessibility to implement top house renovation ideas to skyrocket your property’s resale value.
Ready to elevate your business and property with FACo? CLICK HERE to get started today.
