Are you considering selling your investment property? If so, there are many factors to consider, including if there are upgrades you can make to up the value and make it more sellable. After all, who wouldn’t want to get more money out of their property?
To start the process, you will have to assess the property to see what is in dire need to be fixed it, if anything. In addition, you will have to weigh out your many options of cost, time available, and possible value upgrades and fixes may add after the work is accounted for. Below are upgrades that DaVinci Realty has seen will provide the most bang for your buck when selling an investment property:
Curb Appeal Improvements
A number one priority should be the exterior or curb appeal of your property. It is the first thing people will see when they scope out the properties for sale. The better the outside looks, the more likely they are to be interested and look further. Curb appeal improvements are no-brainers in the selling game. Some quick landscaping changes can bring in more money in the long run. You can change all your annuals, if you have any, to perennials. They are easier to maintain and need less maintenance and hold up better. Pretty flowers and bushes go a long way in curb appeal. Quick tree trimming and mulching can make a large difference in curb appeal and is usually cheap and easy. Consider cosmetic improvements, if needed, such as colors of paint and light fixtures. All of these possible curb appeal improvements can be cheap and easy if you do it yourself and go for cheaper options when shopping. Curb appeal is the best way to get buyers in and will portray a more put-together look. These improvements can lead to more value when going to sell your property.
Investment properties usually come with tenants of some sort. Your investment property could either be a commercial property or a home rental. Rentals can come with an extremely high turnover of occupants, meaning lots of traffic on your flooring – this could either be foot traffic or furniture traffic. Moving a couch in or out of a unit twice a year can put a lot of wear and tear on the flooring if not done right. Therefore, focus on the flooring when going to sell your investment property. If you hadn’t already made a change early on in the property to a material that can handle high stress and is also easy to clean, now would be the time. The carpet and wood flooring, if in the unit, is probably pretty beat up. If you change the flooring to something more durable such as tile, vinyl plank flooring, or polished concrete you will bring more value to the home. Wood flooring will only bring high value if it’s in great condition, and chances are after tenants for a period of time it’s no longer in great condition. The carpet wears out easily and holds dirt, if you want to get more money out of the sale it’s best to get rid of the carpet immediately. Flooring is the second thing possible buyers tend to assess. Good flooring can bring a lot of value to a property; you just have to know what will bring the most value. That would be something durable and easy.
Some improvements in the kitchen can enhance property values. Newer, energy-efficient appliances make it easier to market the property as this is part of the house that many people tend to focus on. People want energy efficiency in their homes, therefore if you have them in the property it’s easier to get the attraction. Replacing old laminate countertops in the kitchen with affordable and in-style countertops can go a long way in value. Repainting and fixing up cabinets is an easy way to freshen up the kitchen area. Replacing smaller appliances, such as cabinet hardware, can also liven up the area and entice more buyers. Some minor cosmetic changes can increase your value when going to sell. It depends on how updated the area already is to see if it’s worth it to replace any larger items.
Any bathroom improvements and upgrades add value quickly, especially if it means improving outdated and obsolete amenities to modern ones. You can re-tile the bathroom for a quick facelift and replace any fixtures with modern ones. Modern light fixtures also might be more energy efficient, which is also a win for buyers. Installing a new vanity with this new modern lighting will give the bathroom an entirely new look. Replacing any cracked or damaged mirrors also helps the value. Bathroom updates can be relatively cheap if you choose the cheaper options when shopping. People spend a lot of time in the bathroom and an updated bathroom brings a lot of value when going to sell your investment property.
Air Conditioning and Heating System
Residential units should always have efficient heating, ventilation, and air conditioning systems. You can easily add value to your property by simply ensuring the HVAC systems are functioning properly and efficiently. Inadequate climate control in your investment property can lead to many problems such as mildew, mold, and accumulation of odors if there’s poor air quality. People are always looking for a functioning air conditioning and heating system. It is easier for buyers in the long run if they don’t have to figure it out for themselves. Also when selling your investment property it’s easier to fix this first, if an inspection for sale later down the line shows poor air systems it could be more costly. Correctly functioning air conditioning and heating systems can bring a lot of value to your investment property.
If you’re considering selling your Denver, CO investment property, but want to squeeze as much value out of it as possible, follow DaVinci Realty’s guide above to get started on upgrades. Or, if you’d like to speak to an expert about if a certain upgrade would be worth it, we’re happy to consult you – contact us today!