So how does an extra $2,723 on your home value sound? If you like the way that change is rattling around, then you’re going to love the weird, completely overlooked remodel option that happens in what is probably one of the smallest rooms in your house for a really great bang for your buck. I’ll tell you all about it in just a minute, but first, I have got to mention some new research that has just come out that is very relevant for every one of you listening. This new study has pinpointed the cities across the country that are, by the numbers, the best cities for real estate investors. You can get all the details in our News and Networking Section at www.rei.today, and I encourage you to check it out immediately. I couldn’t wait to see where MY city was ranked, and I bet you can’t either. You might be missing a big opportunity that is literally in your own backyard.
Anyway, let’s get back to adding thousands to your listing price while doing your laundry…That’s right, the remodel we’re talking about is for the LAUNDRY ROOM! And it’s not really even that big of a remodel in most cases (how could it be, after all, it’s probably the smallest room in your house?) However, despite the diminutive size, the laundry room plays a huge role in a homeowner’s life. In fact, one in two homeowners blamed their laundry for loss of time with their family, directly, and 83 percent said that they were game for ANY home improvement that enabled them to spend more quality time on people and activities they love.
So that takes us, ladies and gentlemen, to the laundry room, where you can, according to Homewyse.com, net an ROI of 77 to 91 percent on a remodel immediately, although, as with all ROI numbers, those are estimates, market dependent, and not guaranteed. Homewyse defines a full laundry-room remodel as updated cabinetry (read, install cabinets with doors instead of shelves), a new sink (probably farmhouse), and nice lighting fixtures. Most design experts recommend adding some countertop space, if it’s an option, because that enables homeowners to do their folding as the clothes leave the dryer. Homewyse also notes that although green appliances do add to the value of a home if they are left, they also add to the amount of time it takes to do the laundry. In fact, according to Whirlpool, it now can take five times longer to DO the laundry thanks to water-saving appliances (though they’ve considerately balanced that out by producing machines that let you dump in an entire week’s worth of laundry at once – and you better factor new appliance scale in when you’re remodeling!).
So when you add in cabinetry, countertops, sinks, lighting, new paint, and nice appliances, you get an estimated material and labor cost that comes in right under $3,000, though that number may be low if you plan to include your appliances in the sale. And your first-year returns could be as much as 91 percent if you list immediately. That’s pretty exciting for a tiny, somewhat boring little room.
Of course, as with any remodel or upgrade, you need to do a bit of due diligence first to make sure that your upgrade reflects the needs of your buying community. After all, the wrong remodel can actually kill your profit margin in very short order! To get a checklist for evaluating a remodel in light of a local market, head over to the REI Today Vault at www.rei.today/vault and check out today’s episode’s supplemental materials (they’re labeled with the episode number). If you’re not yet a member, don’t worry! 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.