One of the biggest challenges people face in today’s market is that new construction prices are significantly higher than existing home prices due to labor and material shortages. Even though existing home prices have continued to rise, they’re still much lower than new construction homes.
Clients like yourself are always looking at opportunities to add value to their own homes or to the properties you’re looking at. In fact, that’s how I ended up getting into the business—I was on the lookout for value-add opportunities. Doing so can provide you with a lot of resources.
Value-add opportunities create additional amenities, as well. By renovating, repairing, and otherwise making the home more attractive, you will draw in more buyers. Depending on your buyers, making certain adjustments can be very lucrative in the end.
When it comes to a value-add, just think about the numbers. For example, to finish an almost bare basement, you’re looking at between $30 to $35 per square foot. The average home sells on the market for anywhere between $125 to $225 per square foot. Considering the numbers like this will help you better allocate your funds to increase your overall profit when you sell.
All in all, if you’re looking for opportunities in the market, consider a value-add property. Many people tend to shy away from them to look at other investments that might not make sense. If you need any resources or want help creating a plan to get the biggest bang for your buck when you sell, don’t hesitate to give us a call or send us an email. We’d love to help you.