As anyone in the market knows, real estate is highly profitable. In fact, according to a report by the Urban Land Institute, U.S. real estate has provided an average annual return of 10.4 percent since 1970, outperforming stocks, bonds, and commodities. And it’s not just individual investors who benefit from this upward trend – developers also make large profits.
In 2019, the average profit per new home was $64,711. This number is up from 2018 when the average yield was $55,420. Developers can also sell homes for more than they cost to build them. The median sales price of a newly built home is $316,000, while the median cost of construction is only $265,000. This means that developers make a profit of $51,000 on each new home they sell.
Real estate is a very profitable investment for developers and individual investors. With prices continuing to rise, now is the time to get involved in this rapidly growing market! However, you must know how to make upgrades before selling your property. Here are a few tips to help you.
Modernizing Furniture
Unfortunately, renovation projects take a lot of time to complete, and you might not have that time on your hands.
A much easier way to increase the value of your home is to update the furniture. You don’t need to gut the entire house and start from scratch – just a few new pieces can make a big difference.
Invest in some modern furniture that complements the style of your home. Stick to a neutral color palette so potential buyers can easily envision their belongings in the space. And be sure to choose stylish and functional pieces; for example, opt for a dining table with extra leaves to accommodate a larger group of people.
Upgrading Appliances
Another simple way to add value to your home is to upgrade the appliances. If your devices are old and outdated, they will reflect poorly on the overall value of your property.
Invest in some new, energy-efficient appliances for the kitchen and laundry room. These will not only look great, but they’ll also help potential buyers save money on their utility bills. Stainless steel appliances are always a good choice because they have a timeless look that never goes out of style.
However, appliances might be a bit more expensive than other household items. If you’re on a budget, you can try shopping for devices during the end-of-year sales. Many retailers offer significant discounts on appliances in December, so this is the perfect time to buy.
Renovating Functional Areas
Renovation can improve a home’s selling value, but it’s also essential to focus on the functional areas of the house. These are the spaces that potential buyers will use the most, so it’s necessary to make sure they’re up to par.
The kitchen is one of the essential rooms in the house, so this is a great place to start. If your kitchen is small or outdated, consider renovating it before putting your home on the market. Even a simple kitchen update can make a big difference in the selling price of your property.
The same goes for the bathrooms. If your bathroom needs work, don’t hesitate to invest in a renovation. A new bathroom can add thousands of dollars to the value of your home.
Energy Efficiency
Energy efficiency is another critical factor that can help increase the selling value of your home. Many potential buyers are looking for homes with energy-efficient features, so upgrading your property to meet this demand can be very lucrative.
There are many ways to make your home more energy-efficient. Installing new windows, for example, can help reduce heating and cooling costs. Upgrading to a smart thermostat can also save you a lot of money in the long run. And adding insulation to your home’s attic and walls is a great way to keep the heat or air conditioning in check.
If you’re unsure where to start, consult a professional who can help you make the right upgrades. You can also get an evaluation from Energy Performance Certificates to help you learn what you should do to lower your utility bills. Energy efficiency is becoming increasingly important in the real estate market, so staying ahead of the curve is necessary. With the right upgrades, you can increase the value of your home by thousands of dollars!
Final Thoughts
Property development can be a great way to increase the value of your home. Whether you’re renovating existing spaces or adding new ones, there are many ways to add value to your property. By upgrading appliances, adding energy-efficient features, or simply updating the furniture, you can make your home more appealing to potential buyers and fetch a higher price when you put it on the market.
