FIVE DESIGN TIPS FOR HOME FLIPPERS TO MAXIMIZE VALUE
FLIPPING?
If you’re a residential developer or home flipper, you know that the ultimate driver of profit is the sale price of your project. And, though you may have an arsenal of tricks to keep construction/remodeling costs low, there are also ways to maximize value during the design and selling processes.
In this article, we take you through our top tips for maximizing your selling price, without increasing costs.
SPOILER ALERT! Many of our strategies have to do with finding ways to make your properties stand out so your buyers feel like there is no substitute for the home and they need to make aggressive offers to win it.
TIP #1
KNOW YOUR BUYER
Before you buy material, break ground or perform demo, determine who your project is for. You need to know how to design for your ideal buyer. For example, it might not be a good idea to turn a garage into an ADU if it’s a family home. A family might prefer the storage space that a garage can offer and may not want a renter.
To identify your ideal buyer, look around the neighborhood and see who is drawn to the area. What industries are nearby where your buyer might be employed? Are there good schools around that would attract families? Is it close to downtown where a young professional might want to be? If you’re unsure, talk to a local real estate professional to collect intel.
TIP #2
ADD UNIQUE DETAILS
Yes - kitchens and baths sell homes and you should focus your big dollars in these areas, but unique features in living rooms and bedrooms that add character and charm are the little touches that can make your project stand out, and for not much money. For example - a feature wall using a different color paint, wood fluting, or dynamic moldings can make a bedroom, living room or dining room seem cozy and custom. Or, incorporating recessed shelves out of drywall in a living room, dining room or even bathroom adds depth and a timeless quality to a home, making it feel more classic. With whatever you do, make sure your features add warmth and character.
TIP #3
BALANCE IS KEY
The benefit with new construction and rehab is everything is new. While buyers appreciate being the first to live in a home, newness can lack warmth and charm. This is where the right finishes can make all the difference. They can help you achieve the depth and dimension typical of European or older, classic homes.
A mix of materials and finishes that coordinates well and in the right proportions is the goal. When you’re making choices for a room, ask yourself if it looks too cold or too warm and consider adding wood shelves or a marble feature to break things up. You can also add depth with color (paint is cheap!). And, yes - modern kitchens are all the rage, but you want your kitchen to stand out – it can be sleek and modern, but make sure it has a soul. Remember, a good stager can always bring in pieces and decor that provide needed balance.
TIP 4
PAY ATTENTION TO HOW ROOMS WORK & HOW PEOPLE WILL LIVE IN THE HOME
Placement of TVs, doorways, furniture - it all matters. We’ve seen properties sit because buyers couldn’t imagine how they would furnish a room because the fireplace and TV were in awkward places. For example, a four-bedroom house with a living room that only allows for seating for 3 is impractical. If you want buyers to fall in love, you need to present to them how they will live in the home and, though a good stager can minimize issues, awkward choices can detract from the appeal. Design from your buyer's perspective to make sure spaces are functional.
TIP #5
PARTNER WITH A DESIGN PROFESSIONAL & INVOLVE THEM IN YOUR PROCESS
If you haven’t guessed already, the above tips can be more easily accomplished by partnering with a designer. Find somebody you enjoy working with - the right partnership can make all the difference in how smoothly your projects go and how stealthily issues are handled. Look for a designer who understands your business and the real estate market. For example, you don’t want to work with somebody who recommends extensive materials that don’t add quality or value to your project. You need a designer who works quickly, knows where to spend money, has the design capabilities to make things look more expensive than they are, and is good at sourcing material. If you find a designer who offers staging, that’s even better.
The longer a stager knows a project the better they can plan their inventory to make sure they have the perfect pieces for the staging design. And, you’re likely to get a discount on staging if you use that person for design advice and multiple projects. Keep in mind as well that stagers know others in the industry and are likely to hear about new properties – they could be the source of your next project or provide leads.
So, there you have it! Notice that “Stage The Property” isn’t one of our tips. Staging is a given. Showcase your property in its best light to reap the maximum benefit of your work.
