Improve Your Home Value By Thinking Like A Home Flipper

We often have strong emotional ties to our homes. However, emotional decision-making can be detrimental when making financial decisions. Selling your home is very much transactional, so you should want to get the most from your investment. 

As a homeowner, you are in charge of making major financial decisions. You are the person most able to exert control over its value. Decisions about your home should be driven by home equity and resale value. The most effective homeowners make business decisions, not emotional ones. Here, we'll speak into how to think like a flipper in order to maximize your home’s value.‍

Understand the numbers ‍

Not everyone is a fan of number crunching and data. But thinking like a flipper requires reading the numbers. That’s where we come in to show you how to increase your return on investment. 

As-is value is exactly what it sounds like. The current condition of the home and what it will sell for in its current state. It's important to be realistic and really honest with yourself. Starting here will be a guiding principle for the decisions made and ROI expected.'

A major part of this is understanding after Repair Value (ARV). This refers to the property value after renovation. The figure is assessed by analyzing the selling prices of comparable homes in an area. 

The delta between the as-is and ARV is considered the potential capture, the increase in value of the home. Knowing these numbers as our guard rails, will allow us to assess what budget should be allocated to gain this increase.

You also need to know the different costs involved. These include carrying costs, material costs, closing costs, and financing costs. All of these should be included when making decisions about home renovation. Collectively, these turn home renovation into an investment.

Start with the end in mind‍

Before starting your renovation, our experts advise you with the end in mind. Here are questions that we ask before getting started:‍

How long will it take from start to finish?‍

Working with professionals who have industry resources can save you time and money. That means dropping holding costs like a bad habit, saving money on taxes, HOAs, and all the other fun stuff. Understanding the timeline also allows you to plan ahead to figure out your living situation. We can help you every step of the way.‍

How much will my house be worth after renovations

‍By looking at comparable houses in your market, experts can project how much your home will sell for after renovation. It takes effort to look at comparables. Just because it's the same square footage bedroom or bathroom doesn't mean its equivalent. 

Looking at the renovations and standards of the house helps to determine which comps best suit your house. It highlights renovations needed to get it to the neighborhood standard. This helps determine what types of upgrades you need that give you a return on your investment.‍

What will the final product look like? 

Potential buyers need to be able to envision themselves in the space. Using neutral colors is one of many techniques that help sell homes faster. This is less about customizing your dream home, more about selling your home. Then, you can use the profits to buy your dream home! These are critical questions to ask. They should drive your decisions and timeline. Having an end goal in mind allows you to work backwards. You can determine what renovations are needed and when you should complete them. This will help you maximize value. 

Building a team of experts

‍Developing strong relationships with contractors is paramount. A healthy relationship often leads to faster completion times, predictable pricing, and high quality work. Vetting contractors and building relationships take time. With years of experience in the real estate world, we expedite this process so you can focus on other things in your life.‍

Another team member to consider is a realtor. Not just any realtor, one that’s familiar with the area and who understands the value of renovation. These people know the difference between selling as is (at a discount) and renovating (for maximum value) can be life changing.

Checkout one of our programs today. ‍

Decorate and stage by identifying what people care about‍

Successful businesses understand their target audience. Selling a home is no different. Yes, you have personal preferences. But when staging a home, you need to focus on the typical buyer. There are several general tips you can follow. 

For starters, no one wants to see your mounted deer antlers or orange accent walls. Paint your colorful walls a neutral color. People want to see a blank canvas. This helps them envision their own style in the home. It also makes spaces look larger. Maximizing natural light by opening curtains or blinds helps too. 

For starters, no one wants to see your mounted deer antlers or orange accent walls. Paint your colorful walls a neutral color. People want to see a blank canvas. This helps them envision their own style in the home. It also makes spaces look larger. Maximizing natural light by opening curtains or blinds helps too. 

You’ll also likely want to reduce your furniture. Make sure there is a functional layout. This makes a home look larger and cozier. Take down family photos and knickknacks. This subconsciously makes a home feel like someone else’s.  

Finally, invest in professional photos. Realtors we work with have relationships with professional photographers who know how to best highlight your house. Your home will sell faster and for more. 

Having a flipper’s mentality will turn an emotional experience into an investment opportunity. The difference can be life changing.