Whether you consider yourself a property entrepreneur, a developer or a flipper, knowing how to add value to a property is your bread and butter.
It’s what gets you out of bed in the morning.
Fortunately, there are so many ways to add value to a property in California.
Depending on the state of the property, your time frame and your own skill sets, some will seem more appealing than others.
Here are some ideas you should be considering when you spot a property begging for a renovation.
Add an Accessory Dwelling Unit (ADU)
California’s housing laws look upon ADU applications favourably, particularly in cities with housing shortages.
ADUs add considerable value to a property because the extra accomodation can be used to house bigger, multi-generational families or provide valuable rental income.
They are particularly lucrative in bigger cities with high demand such as Los Angeles, San Francisco and San Diego.
Subdivision of large lots
A subdivision or lot split is the division of land into up to five separate lots.
This can be an extremely effective way of capitalising on the potential of a larger, underutilized lot.
It allows the building of multi-family dwellings such as duplexes or townhouses and is often looked upon favourably in larger cities and built-up areas in California.
Similarly, developing unused land or updating homes to meet modern standards can also be a highly profitable strategy.
Electrical and plumbing
Big ticket items such as completely rewiring the electrical circuits and new plumbing is sometimes a tough sell for developers.
That is because of the significant time and expense involved and because it isn’t noticeable to the naked eye of the buyer.
But in older properties, it carries a lot of weight and the expense can be justified because it gives buyers the confidence in knowing their new purchase is not susceptible to the ravages of time.
Replacing a roof is another smart consideration for older homes.
The National Association of REALTORS® claim developers recover 100 per cent of the cost of reroofing.
Kitchen and bathroom updates
A state-of-the-art kitchen is very often the hub of a home and that’s why a dilapidated kitchen offers so much scope for refurbishment.
Open layouts are extremely popular kitchen islands and countertops with quality quartz or granite finishes, high end appliances and fixtures, new cabinetry, new flooring, walk-in pantries and modern lighting.
California buyers are especially attracted to remodels that are energy-efficient and eco-friendly.
Upgraded bathrooms should consider double vanities, low-flow toilets, walk-in showers, new lighting, high quality tiling, underfloor heating, heated towel rails and high end fixtures.
Adding a new bathroom or converting a half-bath to a full one can be particularly worthwhile.
For opportunistic flippers, new kitchens and bathrooms return some of the best bang for their buck.
Open floor plans
Knocking out non-load-bearing walls to create an open floor plan creates a feeling of greater space and is very attractive to buyers and renters.
It removes the wasted space of hallways and smaller, pokey rooms.
The concept is extremely popular in California.
It works especially well when combining lounge/dining and family rooms with kitchens in one giant space.
Utilise wasted space
Adding accomodation by way of an extra bedroom is a great way to increase the value of a property.
That’s because modern houses that cater to bigger families are more expensive and more difficult to find these days.
This can be achieved by converting a previously unused space such as an attic, basement or garage.
Those areas may also be converted into offices or additional living areas to add value to a property and make the most of available square footage in busy cities where space is at a premium.
Enhance outdoor areas
Outdoor spaces are highly regarded throughout most of California because of its sunny climate.
Adding the following features can transform a bland outdoor space into a highly desirable entertainment area, especially in high-end markets:
- Swimming pool
- Hot tub
- Patio or deck
- Pergola
- Outdoor kitchen and/or bar
- Wood oven
- Fire pit or other outdoor heating
- Ambient lighting
Sustainable landscaping with drought-tolerant plants and water-efficient designs adds even more value.
Energy efficiency and eco-friendly designs
Californians are passionate about helping to contribute towards a more sustainable planet.
That’s why energy-efficient options and eco-friendly designs are extremely appealing to them.
Solar power is basically an essential, particularly with state incentives and growing awareness of environmental issues.
The installation of state-of-the-art HVAC (heating, ventilation and cooling) systems with smart thermostats will help lower power bills.
Cooling is an absolute must in the hotter regions of the state.
Both the cooler north and warmer south of the state will also appreciate the upgrading of doors, energy-efficient windows and insulation to improve energy efficiency, reduce power bills and impact on the environment.
Using sustainable or recycled building materials or achieving certifications like LEED (Leadership in Energy and Environmental Design) can also boost the value of property where green living is highly valued.
Upgrade technology
Smart home technology is becoming more popular and will appeal to a wider market.
Automated lighting and smart thermostats can also be energy efficient.
Security systems and voice-controlled assistants are also a big selling point, especially in tech-savvy markets like Los Angeles and Silicon Valley.
Improve curb appeal
We are all guilty of judging a book by its cover.
First impressions matter so spend some money on your property’s postcard or curb appeal.
That means a fresh coat of paint, updated garage doors and a modern front door.
And don’t forget landscaping the front yard.
Have it neat, green and bursting with flowers.
Californians appreciate aesthetics as much as functionality in their homes.
Your next steps
There are so many ways to add value to a property in California.
Considering energy-efficient solutions with any development rarely goes unrewarded.
But remember to ensure all renovations are undertaken with the appropriate permits.
Work begun or completed without them may have to be redone and can significantly reduce the value of your development.
Certificates of compliance also give peace of mind to potential buyers.
When renovating a house, you are really only restricted by your imagination and your bank balance.
But with Equidy, money should not be a problem.
That’s because we supply investors with cash quickly and with a minimum of fuss.
At Equidy, our founders have an intimate and personal history with property, covering all aspects of real estate and property development in California for more than four decades.
We stand by our core belief that anything is possible and we try to prove it every single day.
Our goal is to reward entrepreneurship and help you crystallize your wealth creation dreams.
But we don’t just facilitate your finances.
We work creatively with you every step of the way, providing our vast knowledge and support network to help your project take shape.
We enjoy long and established relationships with serious investors, sellers and real estate professionals while leveraging our reputation and trust and using clear communication to minimise the risk to all parties.
Apply now … it only takes a few minutes. You can also book a free, no obligation strategy call with one of our experts to talk about the finance options available for your project.
