15 April, 2020
Why Should You Add a Theater Room to Your High-End Flip?
When you’re flipping a house, how you stage it for potential buyers can be just as important as its square footage in how much value it attracts. With a high-end flip, modern tech-based enhancements can add significant value for the right kind of buyer.
So how do you do it right to make the most money?
The key is to make it a versatile enough space that it appeals to a broad range of buyers. This usually means skipping permanent fixtures like theater seating, instead focusing your budget and effort on the acoustics, the projector and screen, and built-in theater-friendly cabinets.
Knowing where to cut back and where to go for broke is key, too. Most new homeowners don’t want to undertake a lengthy construction project, but upgrading components isn’t as big of a hassle. It makes sense to wire high-end surround sound speakers into the walls, for example. But when it comes to the projector, you can install a cheaper model just to show how well the room functions (click here to find great project options under $1,000). If the buyers wants a high-end 4K projector, that’s an easy upgrade for them to make.
A home theater is one of the most commonly requested extras among luxury home buyers today. Done right, it can definitely give you a good return on your investment. Still not convinced? Let’s look at some other reasons why a home theater is a great choice in a high-end flip.
1: It makes productive use of otherwise unused spaces.
The oft-touted 2.5 children per family statistic is outdated. The average household size has dropped steadily over the past few decades, with many couples having fewer children (or none at all). If you’re flipping an older home, this can leave you wondering what to do with all those extra, now-unnecessary bedrooms. A home theater is an especially great way to make use of rooms with little to no natural light. What would be seen as a detriment for other types of spaces is actually an advantage when setting up a theater room.
2: It doesn’t require significant construction.
A lot of the improvements that offer a high return on investment also require high-level knowledge of construction. A new roof or a bathroom remodel might sound fine to a construction expert, but it’s not something a casual flipper knows how to do themselves. A home theater, on the other hand, requires little expertise to build. Even installing in-wall speakers is just a matter of cutting a few holes in the drywall and stringing the wires through. The less money you’re spending on contractors, the more goes back into your pocket when you sell the home.
3: It appeals to families, couples, and single buyers.
Pretty much everybody watches TV. Unlike a home gym or kid’s playroom, a theater room has broad appeal across age ranges. This is another reason to skip the permanent theater seating—it gives the buyer more options to use the space for gaming, viewing parties, or whatever else they have in mind.
What’s the bottom line?
The 2019 NAR Home Buyers and Sellers report indicates that 37% of today’s home buyers are millennials, and that’s expected to increase significantly over the next 5 years. They’re also more likely to be interested in high-end homes. About a third of first-time millennial home buyers paid over $300,000—nearly double the average starter home price of past generations.
What’s that mean for flippers? Basically that you’ll want to cater to their wishes. Millennials are more likely to be attracted to high-tech upgrades like smart home systems and home theaters. This makes a theater room an increasingly good investment, especially for those fixing up homes in the suburbs.
Like with any home improvement project, it comes down to being smart in how you use the space and money available to you. If the house is on the small side, a theater room might not be functional. If you have a big area to work with, though, putting in a home theater could be the perfect way to increase the home’s salability.
AUTHOR KARL KENNEDY
“I’m Karl Kennedy, and I love movies. Films have been my hobby and passion since I was a kid, and that’s led me on a lifelong mission to find the absolute best home theater setup.”
About the Author
My blog is designed to share the knowledge I’ve picked up along the way, helping other movie buffs to set up their own ideal viewing space. If you’re interested in setting up a home theater in your own house, check out my blog at ProjectorTop.com.”
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