Right now, Vancouver is a buyer’s market. This may seem surprising; but, with prices having skyrocketed over the past few years and properties flooding the market, it has seen a decline. Currently, sales in Vancouver are at their lowest point in many years. But, what does all of this mean for you? How do you stand out in this challenging market? One of the best ways is to make your home more appealing to buyers. In order to do this, you may need to engage in some investment property renovations. Before doing that, however, it is important to consider which renovations are the right fit for your property.
How to use investment property renovations to your advantage in a buyer’s market
In a buyer’s market, there are more homes than there are buyers. This means that sellers must entice buyers to their property. So how do you succeed as a seller in a buyer’s market? The best way to do that is to make your property so desirable that you get a flood of buyers interested in it.
In order to do this, you need to do two things:
- Figure out what appeals to buyers
- Engage in investment property renovations to make your home appeal to buyers
The trick is, you want to make your property appealing, but you also need to keep the price right. That means balancing the renovations with the costs in order to protect your ROI.
How to plan your investment property renovations
The first step in the investment property renovations process can be the most daunting – figuring out what buyers are looking for.
In order to establish this, take a look at other homes for sale in your area, as well as places that have recently sold. What conditions are those properties in? What renovations have been done in them? How much are they listed for or were sold for?
Now, take this information to establish what is working for sellers in your area – and what isn’t. Also, try to establish who is moving into the neighbourhood. Are there lots of young families? Seniors? Professionals? Think if there is anything that current buyers might be looking for based on that. Try to plan one thing that your property offers that no one else’s would. This gives you a unique selling feature to appeal to your audience.
Investment property renovations to consider
One of the simplest investment property renovations is painting. It is amazing what a fresh coat of paint can do for a space! Opt for neutral colours that will appeal to your target buyers. If you do not want to do a full paint job, even just paint the front door. That is a psychological trigger that the home is fresh, creating a good first impression with buyers.
Flooring is another easy way to freshen up your property. Pick a material that is affordable, but on trend. This will make your home feel modern, even if it is an older property. Also, choose something hardy. You do not want open houses and tours to damage the new flooring!
New mouldings give any room a facelift. Again, look at what is on trend. You do not want to necessarily make your investment property trendy, but you do want to create a more modern version of your home’s style.
Your kitchen is worth putting some money into as renovations here increase the amount homes sell for. Consider new appliances, especially if yours are on the older side. You may also want to look at the flow of the space. Is it easy to cook in? If not, are there simple ways that you could shift the space to improve the workflow?
Your bathroom is the other place to focus your investment property renovations on. Look at new fixtures. If the toilet is old, you may want to consider putting in a new one. Remember to also deal with the cosmetics, adding a fresh coat of paint – and maybe some new flooring. This could be the place to splurge a bit, adding something like a warming towel rack or heated flooring.
5. Energy efficiency upgrades
Energy efficient homes are generally considered more desirable. Given that, ask your contractors if there are easy ways you can increase your home’s efficiency. There are some simple options, like better insulations and a good quality building wrap. If you have a highly energy-efficient home, think about adding a charger for an electric car.
6. Square footage increases
If there is an affordable way to increase the square footage of your home, jump on it. Square footage is always a big issue for buyers. Adding more space can be expensive though. If you do not want to put that kind of money into your investment property, think about choices that will make the space you do have look bigger. This can include making several rooms open concept, adding more windows, or even just using lighter coloured paint.
After doing all of your investment property renovations, the final step is staging your home. While this may sound like a small step, it can make a big difference in the selling price of your home. Think of it like dressing well for a job interview. It essentially allows your investment property to put its best foot forward.