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Maximizing ROI in Real Estate Isn't Just for House Flippers

Homebuyers and sellers can benefit too—by making strategic choices that add value from day one.

Take Katie and Matt, for example—first-time homebuyers excited to invest wisely. After an extensive home search, they narrowed it down to three options:

•Home #1: Fully updated with a stunning backyard and great amenities—but it backs to a busy highway. The price is comfortably under budget.

•Home #2: Also updated, with curb appeal and a manicured lawn. But it’s right at the top of their budget.

•Home #3: Needs cosmetic updates like paint and flooring. It’s priced well below budget, and the estimated value after improvements would more than double the cost of the upgrades.

Katie and Matt chose the third home. With just a few strategic improvements, they gained instant equity and a strong return on investment—without stretching their finances.

If you were in their shoes, which home would you choose?