Five Improvements That Will Increase the Resale Value of Your Investment Property
Although curb appeal is the most important factor when selling your investment property, it often loses its luster when it comes to a negotiating price.
In addition to sprucing up exterior landscaping and making cosmetic repairs, investment property owners might want to consider these five improvement projects to maximize the return on their investment (ROI):
#1 Siding Replacement
Those looking to sell their investment properties for a profit should look no further than the building’s siding. If it is even close to disrepair, siding can drain a property of its curb appeal very quickly. The good news is that replacement siding can greatly increase not only the look of a home but also its value. Vinyl siding provides an average resale investment return of 95.5 percent of its cost. That number rises to 103.6 percent when fiber cement siding is hung, which means you can actually recoup your investment and then some if you opt for this alternative!
#2 Steel Entry Door
Average Resale ROI: 101.8%
Most real estate agents will tell you that the entryway of your property is the focal point of the buyer experience. Walking into a home and leaving it typically occurs through the main entry door and improving this area is the best way to leave a lasting impression on a prospective buyer. Steel entry doors won’t crack or bow, they’re energy efficient and they’re more secure than wooden doors. A new steel door is an attractive feature for a prospective homeowner and it offers a great return on your investment as a seller.
#3 Replacement Windows
Average Resale ROI: 89.6%
The impact of replacement windows is immediate. Not only are they eye-catching to house hunters, they can also insulate and provide energy savings while the home sits on the market. As an investor, you might find yourself resisting the urge to splurge on top of the line window replacements, but don’t! High quality replacement windows are often less expensive than you think, and you’ll get most of your money back at settlement.
#4 Wood Deck
Average Resale ROI: 87.4%
Pressure treated wood decks may not jump out on a listing, but they sure do during an open house. In fact, for corner properties, wood decks can also bump up curb appeal. With an 87.4 percent average investment return, adding a wood deck should be near the top of your list of improvements. Don’t forget to decorate it with attractive planters and lighting. These little details will help provide big returns at closing.
#5 Family Room or Sun Room Addition
Average Resale ROI: 83%
For investment properties that are big on land but short on square footage, a family room or sunroom addition can add tremendous value to the bottom line of a sales sheet. Although not as lucrative a return as some of the other items on this list, it’s important to remember those are just averages. For smaller homes, an addition can make all the difference.
If you’re looking to add improvements to your investment property this spring, contact one of Century Home Improvements certified improvement specialists today.