Renovating a Home to Improve its Resale Value

by Clay Davis

Buying a fixer upper can be an exciting venture. Not only are you possibly starting a new business, but you stand to make a tidy profit if done right. Even simply adding a few cosmetic touches and some healthy cleaning can help you turn an outdated home into a real profit maker. Buying a fixer upper is an investment and the more work you put into it, the more money you can make when you go to resell the home.

A fixer upper home may not be great to look at when you first buy it, but by the time you finish you should definitely be able to see how the improvements will expand your profit. There is a great market for these homes because they are considerably less expensive than buying a home that is new or totally renovated. This usually means more money in your pocket and a happy buyer once the work is complete. There are some ways to maximize the resale value of the home that you are fixing up so you can gain the most from your investment.

Casually looking around and choosing the optimal location is usually the best place to start. Without the right location you will be hard pressed to find a buyer later, no matter how beautiful the house becomes. It is important to determine a location that appeals to many different buyer tastes and is safe and friendly. After preliminarily choosing - but prior to buying - a home, have a professional inspection done to make sure that you know exactly what you are getting into. It is hard to obtain the most for your resale value if you have to put a lot more money into it than expected. On that note, you also don't want to rush any of the improvements to get the house on the market quickly. Taking the time to do quality work will really make the house shine.

The extra time includes making sure you fix the house from the bottom to the top. Problems like ants or mice in the basement may seem insignificant compared to the work performed, but they are more than likely going to turn off potential buyers. (Put yourself in their shoes.) The same can be said about cosmetic deficiencies, such as loose wall paper in the bathroom. People do not want to buy a home that requires a great deal of work after moving in, so you should plan to make all necessary changes before you even think about selling it.

Finally, sell the home during the right time. If the housing market is slowly falling then you may want to hold onto it for a while and consider renting it out until the market changes in the sellers' favor. Fixing up a home for resale is an excellent way to make money if you remain focused on your original goals and take the steps necessary to ensure you are selling a great residence.