Did you know that Americans spend over $400 billion every year on residential repairs and renovations? Some of these fixes are to suit the needs of current residents. Other projects come about before a house hits the market for sale.
The cost of refurbishing a house in its entirety can range from $100,000 to $200,000. However, you do not have to completely refurbish a house to get a return after you sell.
You may be contemplating picking up a fixer or selling your own home. If so, read this guide for three pointers on how to refurbish a house and actually generate a return on your investment.
1. Make a Plan and Stick to It
Before you start your project, it’s imperative to make a plan and stick with it. If you don’t know where to begin, follow these plan-building steps.
- Establish a budget
- Decide on a deadline
- Make a list of needs, wants, and bonuses
- Start to build your plan
Understanding the absolute top of your budget allows you to decide which projects you can reasonably accomplish. Knowing how long to refurbish a house (2-6 months on average) gives you an idea of a timeline. Adding together your budget and set deadline gives you an idea of when certain projects need to start.
For example, say you have a budget of $20,000. “Fix the roof” is on your “needs” list and that will cost on average, $6,000. You now know that you have $14,000 left for your other needs, wants, and bonuses.
Once you’ve priced everything out and decided your plan, stick to it! The longer projects like these drag on, the more they cost. That extra cost eats into your return.
2. DIY Within Reason
Doing projects yourself can be a great way to save money. However, there are certain things that professionals should complete. These include:
- Major plumbing projects
- Electrical reconfiguration
- Structural changes
- Rerouting gas lines
While you may save a buck trying to do these things yourself, the danger of certain projects does not outweigh the savings. Reckless DIYing may save you money upfront but could come back to bite you during inspection if things are not to code.
3. Convert With Care
Some conversions will make you money when you go to sell, some will not. Be careful when choosing where to budget your time and money. After fixing any major structural or roofing issues, focus your efforts in these ways:
- Updating the kitchen
- Touching up bathrooms
- Styling the laundry room
- Landscaping and property refurbishment
You do not have to do a major overhaul of these zones to see a return. In fact, when you refurbish a house, you should carefully weigh the quality of the features against what your return could be. Buyers want to walk into a clean space, they won’t necessarily notice if you have the highest-end finishes.
Updating floors (like in these projects), painting walls, changing lighting features, and professionally cleaning carpets give a home a “new” feeling without breaking the bank.
Refurbishing A House to Make Top Dollar
If you’ve ever thought to refurbish a house, now you know the basics to getting started. Make your plan and get going. Happy fixing!