So wouldn’t you like to do a quick few hours of work and pull in an extra few THOUSAND DOLLARS on your home sales price? Of course you would! And I’ve got the details on exactly where you should be putting that very minimal sweat equity of yours in today’s episode. However, before we get to that, I want to talk about another kind of equity, the kind made out of cold, hard dollars and cents. In certain cities around the country, home values are spiraling upward so fast that some analysts are starting to whisper that nasty word (bubble) when they talk about them. However, in particular locales, there are factors that make a bubble highly unlikely but that make appreciation (and equity in the short term) highly LIKELY. Check out our list of the 3 fastest growing cities in the country in our News & Networking Section at www.rei.today and find out if your favorite market is ripe for lots more dollars and cents on your home value or whether you might be heading for a bust. You’ll be surprised at what you learn.
Now, back to your sweat equity and instant home value growth over a weekend (in most cases, of course)! According to the National Association of Realtors (but we’re all friends, here, so we’ll call it the NAR moving forward), a full kitchen remodel can easily cost $20,000 or more and take weeks if not months to complete. However, there are several far less time-consuming and far less expensive options that can still net you some significant gain on your home value. Here are my three favorites, and I selected them for great ROI (on an average home the ROI should raise the value either by a couple thousand dollars or EXPONENTIALLY based on the small amount of work) and low time and resources costs, meaning you can probably bang these out yourself. Here they are, along with the metrics that show just what you can accomplish.
For starters, you could put in a FARMHOUSE SINK. That’s one of those big, sunken, usually porcelain or stainless steel sinks that often has two sides and a big arching faucet. Would you believe that one of these babies, which costs about $230 to have installed professionally and another $600 (at the top end) to purchase, can result in your snagging nearly 10 percent more on your home price AND SELLING almost two months faster than other comparable homes? That’s pretty big savings and “earnings” for a snazzy place to wash your dishes and less than $1,000 outlay.
Next, you might consider installing a nice tile backsplash behind that sink. Counting installation and materials, you can come in way under the $1,000 marker, with homeadvisor.com estimating that you can install a 30-square-foot ceramic tile backsplash for about $812, a stone backsplash for $870, and a glass mosaic one for just under $900. Backsplashes are an easy way to add pizazz to a kitchen without re-doing the entire thing, and a glass kitchen backsplash COULD net you as much as 60 percent ROI when you resell. Some analysts predict that number will continue to rise because glass backsplashes make rooms appear larger and brighter, are easy to clean, are mildew- and stain-resistant, and are considered by most buyers to be “green” (environmentally friendly) materials because they can be made out of recycled glass.
Finally, (you knew this was coming) PAINT THAT KITCHEN! According to Homegain.com, you’ll earn a 250 percent return on investment when you sport some freshly-painted interior walls in your kitchen. For most kitchens, painting the entire thing is the work of a weekend, and a nice, neutral, light color is a great way to attract potential buyers anyway.
So now that you’re all jazzed up about these easy and relatively cheap kitchen investments, allow me to take a moment to remind you that this program does NOT promise results. You need to analyze the comparable properties in your market in order to determine if you think that your ROI will be worthwhile for these or any upgrades. Furthermore, hey, I don’t know if you can paint! I guarantee if I come to your house and do any of these upgrades on my own, in person, without professional assistance, your ROI is anything BUT guaranteed. So just because a survey or an article or a PODCAST says something is easy to do yourself does not mean you should just write off what you know about yourself and dive in without the right research and preparation.
Now, if you want a complete list of the eight kitchen upgrades that cost less than $1,000 that the NAR recommends, I’ve got them all lined up for you in the REI Today Vault so head on over to www.rei.today/vault and browse to your home-upgrading heart’s content. Not yet a member? I’ve got you covered. text REITODAY no spaces no periods to 33444 and I’ll immediately send you the information you need to get that access and ALSO provide you with fast, immediate access to all sorts of great trainings, news coverage, interviews, and lot more timely information that will help make your investing safer, faster, and more profitable.
And remember, when you do that, you’ll also be able to GROW YOUR NETWORK by interacting with me and your fellow listeners to REI Today… so stop by to ask questions, make comments and network with other investors across the country. Text REITODAY no spaces no periods to 33444 or head over to www.rei.today/vault right now.
REI Nation, thanks for listening in and always remember this:
Your best investment is your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.