It’s no secret millions of Americans lost their homes with the 2008 collapse of the US real estate market. Now, some of those families, coined as ‘boomerang buyers‘ are returning to the market with a vengeance. These people went through the tough process of losing their homes to foreclosures at least three years ago, which is the minimum wait period the Federal Housing Administration allows before new mortgage eligibility. Typically, these boomerang buyers are interested in starter homes and are ready to buy in emerging markets. So, as a U.S. real estate investor there are a few ways you can make cater to boomerang buyers if you want to flip your property.
1) Pay attention to ‘Curb Appeal’: The curb appeal is the first impression a tenant or buyer has when they come to your property. If you bought a foreclosed unit, take the time to make sure the exterior has a fresh coat of paint, some landscaping and and a nice front door. This type of work is relatively inexpensive, fast and amazingly effective for your turnaround rates.
2) Home Office Remodel: If you want to profit from a home office remodel, it’s important to opt for a design that can be converted to a bedroom or a den. When you advertise, call the room a study, hobby or den so the potential buyer starts to think of ways he/she will use it.
3) Kitchen Renovations: The kitchen is an amazing opportunity to remodel with simple upgrades that shouldn’t cost too much. Most of the time, you’ll find that the kitchen is a priority for renters and buyers alike, so it’s a good idea to modernize the kitchen, get rid of any funky colours or old cabinets with fresh paint and new hardware. Keep in mind that refurbished appliances are money-saving alternatives to brand new appliances, get the kitchen cleaned and keep it well-lit.
4) Build a Deck: A deck can be an inexpensive way to attract would-be buyers in certain markets. The actual installation can be done relatively quickly and a finished deck can add thousands to the property value.
1) Renovate the Master Bedroom: A typical super deluxe master suite renovation, which includes the use of more space and top-notch materials. is more expensive than the appreciation. Think simple instead, such as: a fresh coat of paint, new moldings, new doors, new flooring, new handles, etc. You get the idea, upgrades.
2) Install an extra bathroom: It may seem like a good idea but the cost of adding a bathroom can be outrageous. From materials to plumbing nightmares, this is a don’t unless you must. If you have to do work on the bathroom, watch the materials you use to minimize expense.
3) Install a Pool: Luxury remodels are not a great investment right now (unless you are in the vacation rental niche). Try to avoid any major or luxury type of upgrades.
Essentially, you want to keep it simple, fresh and clean. Exterior upgrades with new lighting and fresh paint gives plenty of bang for your buck. Interior work like new flooring, fresh paint, new doors, bright lighting, new handles and those type of minor upgrades are also important. Also, be sure to pick a location with job and population growth so you have a desired location!