Real estate values are determined by a host of factors, including a bank appraisal, and more importantly the price a buyer is willing to pay for the property. True value is often less than perceived value. Whenever a buyer seeks real estate, an in-depth search of comparable properties is conducted to gauge relative prices for similar real estate. Due diligence is an important part of the real estate quest. Buyers and investors are loath to shelve out more than a property is worth, unless of course they are making an emotional decision because they want the real estate more than they want a good deal. Fortunately, there are ways to make a property inherently more valuable, and it all begins with a lesson in economics.
Leading real estate investment guru, Ofir Eyal Bar has been involved in the industry for many years. As a high-powered professional, he knows how to piece together a formidable portfolio of investments. He has acquired multiple diamond mines in South Africa, commercial and residential real estate in Israel and the United Kingdom. His real estate empire spans multiple continents and millions of dollars. His advice is simple yet surprisingly effective. He advocates following a BRRRR strategy, with an eye to buying low, watching the purse strings, and generating outsized returns.
- Buy at the Right Price
The right price is a relative term. It indicates a price point that is below the asking price and below comparable prices for similar properties in the same neighborhood. Getting the right price is often an insuperable challenge. However, it’s incredibly important if you’re looking to increase your property’s value. In the words of Bar, ‘You are always better off buying the least expensive house in the best neighborhood than the most expensive house in the worst neighborhood.’
2. Rehabilitate your Property
Many homeowners cringe when they hear the words rehabilitate your property. This advice sets off alarm bells because it incurs expense. However, there are many ways to rehabilitate your property to get maximum bang for your buck without breaking the bank. For example, if you are handy you can do a lot of the cleaning, sanding, stripping, painting, and repair work yourself. If not, you can easily draw up a list of prioritized rehabilitation projects that will generate outsized returns for your property.
These include filling surface cracks in the walls, ceilings and foundations, and then repainting. You can also strip the paint off your kitchen and bathroom cupboards, apply primer and repaint them for a new look and feel. Low-cost rehab work such as new doorknobs, handles, faucets, furnishings, fittings, and other accoutrements can add lots of value to your property. You don’t need to replace your kitchen countertops with granite; you can use faux granite paint by preparing your counters for a makeover. Bathroom remodeling is expensive, but you can achieve a wow effect by framing your mirrors, installing new faucets, counters, or resurfacing your bath tub.
Provided the rehab work is designed for maximum aesthetic appeal, without straying too far into the expensive zone, it will boost your property’s value.
3. Place Emphasis on Curb Appeal
Curb appeal refers to what your property looks like from the outside. Sure, everyone wants to know what a property looks like on the inside, but a perfectly manicured lawn, freshly painted fence, beautiful flowers and an inviting terrace will make the world of difference to a buyer. To this end, landscaping initiatives work wonders. You may want to plant native trees, with lots of shrubs and perennial foliage to help reduce your overall landscaping costs.
4. Hire a Home Inspector
Many people neglect this point to their detriment. A home inspector will go through your home and scrutinize it for things like dry rot, leaking pipes, damaged drywall, structural abnormalities, termites, improperly connected cables, faulty AC units, faulty boilers and so forth. By making the necessary repairs, replacements, or changes, you will save a ton of money down the line. If you’re thinking of selling your home in the future, a buyer will always be impressed with a homeowner who keeps meticulous records. Plus, you certainly don’t want expensive repairs later on if you can nip them in the bud right now.