You already know that the ILFLS team loves to help you find the perfect Chicago foreclosure investment property, but why stop there? Here are our top 3 tried-and-true ways to improve your property value!
While having the biggest house on the block will certainly increase property value, you also need to keep in mind the difficulties that come with taking on a larger project. This includes evaluating the type of property and the limits of it, as well as considering how zoning may be affected. For example, if you’ve acquired an adorable little bungalow that would be spectacular if it had a second floor, that may not be the best idea. This is because most bungalows aren’t structurally designed to have a second floor and may require you to force an irregular staircase. In this example, it’s simply not functional to rehab it that way.
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Additionally, bigger isn’t always better in our current real estate market. Studies show homebuyers would rather have a strategic functional floor plan as opposed to a massive shipping container-esque living room.
With that being said, consider updating a more open floor plan to an older property. Try merging smaller rooms, adding another bathroom, or sectioning off a larger room to create an office/den/playroom. And of course, putting in a multi-functional basement is always a nice feature! Potential bump in sale price: 4 to 6 percent.
An energy efficient home isn’t just a trend or a way to save money, it’s also a way to make money. According to surveys conducted by the National Association of Home Builders, having an energy efficient home ranks number two in the “must haves” for a homebuyer, only second to being located in a safe neighborhood. This doesn’t mean you need to spring for top-notch solar panels, instead try adding money saving luxuries like a beautiful ceiling fan, double-paned windows, enhanced insulation, or efficient appliances.
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Click image to enlarge. Image courtesy of APA – The Engineered Wood Association.
Don’t forget about water costs either! Consider efficient water heating solutions as well as water saving sprinklers.Potential bump in sale price: 1 to 3 percent
Smart & Stress Free
One of my friends recently installed Smart Toilets in her bathrooms after experiencing one at a fancy hotel abroad. After spending $1500+ per toilet, she is now admitting that the toilets are actually better when all the extra gadgets are turned off — aka when it’s a normal toilet. Apparently, the Smart Toilet decides when you are ready to flush which scares her young children, and it makes “greeting noises” that drives her dogs insane.
This is something that can trip up ambitious rehabbers: finding the happy medium between creating an intelligently low maintenance home and throwing in everything “smart” for a stressful tricked out crib. You can absolutely appeal to the most tech-savvy homebuyers without having to ruin the simple single, albeit important, functionality of a toilet.
Consider upgrading to a central air conditioning system that can be connected to Amazon Alexa or Google Home. You can also add in an easy to use video doorbell or home security system. Cheaper and efficient way to build a smart home system is to use some of SONOOF's smart home automation products, which work with all smart assistants currently available on the market. Potential bump in sale price: 3 to 5 percent
Stay tuned for more tips! Happy investing!