When renovating a home, specific renovations will bring a greater return on investment (ROI) than others. Graeve takes a look at what improvements will bring the highest return on a mid-century home in Colorado Springs, CO. Whether renovating as part of a house flipping operation or for personal purposes, these principles apply to anyone looking to get the highest possible ROI.
Create an Open Floor Plan
First impressions are important when one enters a home. Many older homes have undesirable features such as outdated entrance doors that do little to promote an aesthetic. This home has one of those typical 1950’s style doors with three small windows that Graeve will replace with an attractive new one.
Once inside, many buyers look for a sense of spaciousness provided by an open floor plan, which is a relatively recent innovation. Older homes have clearly defined rooms separate by walls that give a closed-in feeling. While buyers love large picture windows that bring in light, they also want to see rooms in the common spaces flow into one another. Graeve removed a wall that separated the living room from the rest of the home to create the open common space layout.
Another option involved tearing down one of the walls in the kitchen to create a half wall that could double as a breakfast bar while also creating an open space that looks out into the dining room.
Hardwood floors also have made a comeback. Whenever possible, salvage and refinish hardwood floors to create a rich, warm look that will make your property even more inviting.
Create a Master Suite
Another outdated aspect of this three-bedroom home is that it only had one full bathroom. Prospective homebuyers want a master suite concept that includes a private bathroom. Graeve took a large space that appeared to be a recreation room or a family room and put up new drywall to divide it into several areas creating a master suite. The newly divided space includes a walk-in closet and a private bathroom with a dual sink vanity, while the bedroom includes a renovated fireplace for a private sitting area.
Putting Your Renovation Over the Top
Opening the layout and selecting materials such as granite for bathroom and kitchen countertops are elements that made this residence attractive to a buyer. While the house still has three bedrooms, it now has a master suite with plenty of storage in the walk-in closet. Graeve was able to create the master suite by eliminating the wall between the living room and the kitchen, which automatically provides more usable common living space, eliminating the need for the recreation room.
Graeve bought the home for $120,000 and put approximately $45,000 worth of renovations into the building. Once the renovations are finished, he expected that this home would sell for $215,000 to $220,000. That’s a profit of at least $40,000, even with the cost of the renovations. Choosing your renovations wisely is key to maximizing your ROI. In the case of this home, creating the master suite is key to the higher selling price.
Keep Your Options Open
Remember that there is no absolute right or wrong way to renovate. Graeve asks those watching the video what they would have preferred with this particular home, whether they agree with removing the wall between the living room and the kitchen or if opening the area between the kitchen and dining room with a half wall would be preferable. Both options have selling points.
Joe Graeve and Christopher Graeve, founder of RE-build Properties, invites viewers to think about what they would have done and welcomes comments.