4 Home Features to Splurge On When Flipping a House

Over the last few decades, flipping houses has become the way to turn an older home into the perfect, modern dream house for any buyer. For “flippers” and sellers, it has even turned into a risky, but in some cases, very profitable source of income.

As years have passed, house flippers have refined their skills to find the best ways to buy the home, inspect it, renovate it, and finally, sell it. However, buyers have also changed their ways, their likes, and dislikes so, simultaneously, their favorite features in a home have evolved as well. As a house flipper, it is relevant and beneficial to stay up to date on what home features will produce the highest return on investment (ROI) and appeal to your potential buyers.

If you’re flipping a house and looking for your next big sale, keep in mind these home upgrades to produce the best property for your buyers and the best profit for yourself.

1. Windows

Windows are one of the most underrated features in any home but they actually have a large impact on the comfortability of the home and the happiness of the homeowner. By bringing in more or bigger windows into an older home, you can drive more natural light into the space. This can have a positive impact on a buyers’ mental and physical health in the long run. An abundance of natural light has been known to boost energy levels↗, suppress unregulated melatonin production, and from a buyer’s perspective, it gives the home a much more open and fresh feel—which can be beneficial when selling.

Not only do the general benefits of natural light make window upgrades ideal, but homebuyers are actually looking for energy efficient windows. Studies↗ show that the top three window brands preferred by home buyers are all focused on energy efficiency. ENERGY STAR certified windows, for example, were deemed essential and/or desirable by over 80% of survey respondents showing just how great of a demand there is for this home feature. So when flipping, replacement or upgraded windows may bring your home up in value tremendously.

2. Layout

Home layouts have drastically changed over the last few years from the sectioned off rooms we often saw in many mid-century home designs to today’s abundance of open floor plans. An open floor plan can create a fresh and cohesive space for a homebuyer that in a lot of cases, is just more fitting for their lifestyle. For many singles, couples, families, or empty-nesters, an open layout can be beneficial for entertaining and hosting friends, watching the kids, or even just navigating the house safely. A change in layout will be one of the most ideal upgrades to make in any modern house flip.

However, despite its positive return, a layout change isn’t always as quick and easy as it may sound. Understanding the history of your home and when it was built can help lead to informed decisions when adjusting the floorplan. Knocking down supporting beams, tearing into walls with pipes and electrical wiring, or finding mold can become expensive and detrimental problems. When demolishing walls in older homes, you should look into hiring an asbestos inspector. Many older homes are riddled with asbestos. When it is not handled properly, you or your potential buyer risk bringing on symptoms of mesothelioma↗ and other asbestos-related illnesses. However, by starting with an asbestos inspector or abatement company↗, you can remove the toxic chemicals altogether. As a seller, this is beneficial to you because many buyers steer away from homes with asbestos in them and it can certainly bring your home’s value down if you are competing with other modern homes in the market.

While an inspector and abatement company may cost a pretty penny in the short run, it will be worth it once you reap the benefits of your new layout and eliminate the possibility of any legal setbacks from the buyer. Luckily, even after spending on these necessary tests and inspections, some sellers have produced as much as a 70% ROI↗ by choosing an open layout and correspondingly, created a 7.4% increase in property value.

While an open floor plan can be incredibly profitable when flipping a house, you’ll have to be willing to invest in the short run to reap the benefits in the long run.

3. Front Doors

Curb appeal overall can include a number of different elements from landscape design to general composition and set up of the space. But more specifically, the front door and garage door can positively impact a buyer’s perception of the house before they even enter. Although they are seemingly irrelevant parts of a house flip, they can begin to set the tone for what home buyers will experience on the inside.

You have several options when it comes to replacing front doors. Everything from custom wood doors to arched, glass doors can be made modern and desirable to a buyer. Along with the garage door, the front door is a focal point of the front of the house so it is a great place to showcase personality and uniqueness.

You can portray feelings of luxury, comfort, and family by the way the front door is designed. In combination with a similarly designed garage door, you can communicate cohesiveness to any potential buyer viewing the house. From a profitability standpoint, the entryway and garage doors can produce well over a 60% return on investment↗, causing the home value to increase as well.

4. Outdoor Space

Lastly, an outdoor or backyard space upgrade has become essential when flipping a house because of the sheer demand during the COVID-19 pandemic. Homebuyers have prioritized the need for a comfortable and livable outdoor space just as much as any other room in their home. As a house flipper, it is in your best interest to prioritize this space as well.

Similar to curb appeal, an outdoor space↗ should include several elements like an entertaining space, a possible kitchen area, a seating area, and general landscape design. Of course you can hire externally to tackle those smaller elements but again, it's important to prioritize the focal point of any backyard space—a deck or patio.

When executed properly, a modern deck or patio space can generate a 10% increase in property value. Luckily for you as a house flipper, this isn’t an expense that will necessarily break the bank; especially if there is already an existing patio or deck on the property. To simply revamp what is already there, some spend only a thousand dollars or so. But even to install one completely from scratch, you can still stay around a few thousand dollars depending on the size and material of the deck of the patio. In most cases, the real money is spent on the decor and design of the space.

However, even if you opt to skip out on landscaping and design, a new or upgraded patio or deck can still stand on its own pretty well. An empty patio or deck can show an opportunity for growth to potential buyers. They will be able to see how they can design and adjust the space to fit their own lifestyle and you get to save without sacrificing too much of the return on your investment. So as we continue through this pandemic, you should leverage the demand for outdoor spaces and prioritize it in as many house flips as possible.

Flipping a house can be challenging and it isn’t always as simple as many professionals and remodeling veterans make it seem. There’s a lot of risk involved and for the inexperienced, this can be incredibly intimidating and even debilitating to your success in the industry. However, when you understand what home features will not only benefit your buyer but also your profits, that’s when you begin to make some real steps toward success. So, to start, make sure to prioritize these four home features in your next flip and watch your ROI and property value soar.