Renovation can increase the value of your property investments
By: Nesa Rahmat/
Image credit: Grant McLean/Flickr
Getting ahead in real estate investments is not just about buying properties – the most strategic move for you may be to improve the value of a property you already own, even your home. If you are happy where you are, renovation can be a sound financial strategy. When you renovate your own home, you win twice – once when you enjoy the benefits of a better home, and once again when you sell the home.
When it comes to resale value, however, not all renovations are created equal.
Let’s look at an example. Suppose you live in a landed property and fancy a hot tub on your back deck, and decide to invest $10,000 or so. Will that add $10,000 to the value of your home? Likely not. The truth is, not everybody
Compiling a targeting strategy for a home remodeling company requires dividing the potential market into segments based on commonalities, selecting the segments with the best sales prospects and devising the most appropriate product and methods with which to approach each target segment. Statistics from market research organizations can provide you with the number of people who fall into each of the categories you identify.
Segmenting the Market
Segmentation involves identifying the group or groups of prospective customers that are most likely to need home remodeling services. This enables you to create a targeted, strategic marketing program. Visualize your company’s ideal customer, based on identifying demographic factors such as age group, income, marital status and home ownership. For example, students renting their first studio apartment are unlikely to need home remodeling, so segmentation should eliminate them as a group. Break the larger segments up into subsets based on specific needs.