When you’ve built, redesigned or flipped dozens of homes like HGTV’s “Hidden Potential” host Jasmine Roth, you know what attracts buyers.
Here are some of Roth’s tips to improve your investment game and boost returns.
1. Timeless design
Don’t waste your time scouring the Internet for the most stylish aesthetics, Roth said. Your home should have an enduring and adaptable design that will appeal to buyers.
“My big, overarching advice would be don’t try to be on-trend,” Roth said. “Buyers see right through that. Rather, think of a timeless design, something that is functional. Add elements to a property so a buyer can walk in and immediately see how it’s going to work for them.”
2. Function over form
Roth’s building philosophy, in general, is to make spaces work for family life, she said. Choose hardy materials that will last through kids, pets and everyday life.
“I’m really big on durable materials,” Roth said. “Put in materials that are family-proof, and kid-proof, and dog-proof. I think it’s just a no-brainer.”
One piece of durable material Roth recommends is a hardy alternative to high-end wood floors.
“I’ve been using a lot of luxury vinyl right now for my flooring,” she said. “I think people hear ‘vinyl flooring’ and they cringe. But vinyl has come a long, long way. I’ve put a piece of luxury vinyl and a piece of engineered hardwood next to one another for my most discerning client and they can’t tell the difference.”
3. Take measured risks
It’s important to carefully scrutinize your plans and decisions, Roth said. Realize that, in real estate, things can change quickly and so don’t make too large of commitments that could jeopardize your future.
“I’ve gotten to where I am by managing my risk and not being short-sighted to the fact that we are working in an ever-changing landscape, and whether it be our economy, whether it be tastes and preferences. There are just a lot of moving parts,” Roth said. “For example, if I’m doing a big development, say I’m designing 30 homes, I’m going to design those homes in phases. I’m not going to design all 30, because chances are, by the time I get that 30th house, something is going to have changed.”
4. Make data-driven decisions
A self-proclaimed spreadsheet fanatic, Roth encouraged investors to use data to help inform decision making.
“I’m big on spreadsheets. I’m big on facts. I’m big on real numbers — things that are black and white,” Roth said. “So for me, if I can mitigate my risk by looking at real numbers, I’m going to do it. That’s why I like new construction. It’s less risky, in my opinion, even though it takes more money. I can put more numbers into my spreadsheet before I get started than I could on, say, a renovation.”