When purchasing and preparing an investment house for resale, keep in mind what type of person will want to purchase the house. Certain types of people search for certain types of houses that will fit their lifestyle and budget. Knowing ahead of time what category of buyer a certain property will attract can really give the investor an advantage in the real estate market.
Some improvements to investment houses will automatically appeal to a broad range of the house-hunting public, such as lovely bathrooms and modern, beautiful kitchens. No single house will appeal to everyone, but you can improve the odds of a sale by planning improvements and upgrades with a particular category of a buyer in mind. This will create a very desirable house that will sell quickly and for more profit.
Being able to correctly assess a house for the category of a buyer is not so difficult when you use the basic formula listed below. When using this formula always remember to keep the price of the neighborhood houses in mind when planning improvements. For example, don’t put a high-end kitchen in a low-end house. You won’t be able to recoup your investment money.
This category can be broken down into two subgroups: the small family and the large family home. The large family naturally needs a bigger house with more bedrooms and bathrooms. This category of buyer also favors an open plan of design, with family room and kitchen combined into one open space with durable flooring. A good sized fenced-in backyard, lots of storage, large laundry room, and/or mudroom are good upgrades. This category also includes a couple or family with several pets, such as dogs.
House For Empty Nesters
This category buyer is older with no children at home. They are basically looking to buy a smaller home that involves less work and stress. A smaller yard with little maintenance, that does not sacrifice curb appeal is a good selling point. This type of buyer will typically spend more on a house with expensive upgrades, such as a gourmet-style kitchen and a luxurious bathroom. Amenities such as a good security system, a better grade HVAC and heating system, and an inground sprinkler system are upgrades to increase the desirability for this type of investment house.
House for Working Professionals
This type of buyer usually looks for a house in a trendy part of town that is easy to maintain and closely caters to their lifestyle. They prefer a convenient kitchen and bathroom with lots of storage that keeps everything within easy reach. Big, walk-in closets or dressing rooms are a plus. Roomy and attractive home offices and a large master bedroom suite are good amenities to include in this type of investment home.
House For Single Person
This is usually a small, very affordable house with the basic amenities that appeal to first-time buyers or even single parents. To sell well, this house should be staged in a way to make the house seem cozy and welcoming, along with great curb appeal. A good security system and low maintenance landscaping are good improvements for this type house.
“Remember, wealth has nothing to do with money, success has everything to do with failure, and life is as simple as you make it!” – John Dessauer