Real estate expert Scott McGillivray reveals 5 mistakes that lower a home's value and more

Before you go, we thought you'd like these...
Before you go close icon
Can You Tell Which Home Improvement Items Are Expensive?

Scott McGillivray is a seasoned real estate investor, contractor and entrepreneur. He started on his career path in college, and has now been in the business for 16 years, best known as the host and executive producer of the DIY network's Income Property series. Now in its 11th season, the show features Scott helping homeowners renovate their homes or vacation properties to maximize rental income.

"It became a career and a passion," Scott shared. "It's authentic ... I enjoy it, it makes sense and it's helping people."

See photos of Scott McGillivray:
12 PHOTOS
DIY star Scott McGillivray
See Gallery
Real estate expert Scott McGillivray reveals 5 mistakes that lower a home's value and more
TORONTO, ON - SEPTEMBER 11: TV personality Scott McGillivray attends the 5th Annual Producers Ball presented by Scotiabank in support of The 2015 Toronto International Film Festival at Royal Ontario Museum on September 11, 2015 in Toronto, Canada. (Photo by Mike Windle/Getty Images)
TORONTO, ON - SEPTEMBER 11: TV personality Scott McGillivray attends the 5th Annual Producers Ball presented by Scotiabank in support of The 2015 Toronto International Film Festival at Royal Ontario Museum on September 11, 2015 in Toronto, Canada. (Photo by Mike Windle/Getty Images)
TORONTO, ON - MAY 22: Scott McGillivray attends HELLO! Canada Gala Celebrates Canada's Most Beautiful Gala at Shangri-La Hotel on May 22, 2014 in Toronto, Canada. (Photo by Sonia Recchia/Getty Images)
TORONTO, ON - MAY 22: Scott McGillivray attends HELLO! Canada Gala Celebrates Canada's Most Beautiful Gala at Shangri-La Hotel on May 22, 2014 in Toronto, Canada. (Photo by Sonia Recchia/Getty Images)
TODAY -- Pictured: (l-r) Hoda Kotb, Kathie Lee Gifford and HGTV's Scott McGillivray appear on NBC News' 'Today' show on April 1, 2013 -- (Photo by: Peter Kramer/NBC/NBC NewsWire via Getty Images)
NEW YORK, NY - JUNE 22: TV personality Scott McGillivray attends the Wine & Design party at the Altman Building on June 22, 2011 in New York City. (Photo by Michael Stewart/Getty Images)
TORONTO, ON - SEPTEMBER 14: TV Personality Scott McGillivray poses at the 'Glorious 39' screening after party during the 2009 Toronto International Film Festival on September 14, 2009 in Toronto, Canada. (Photo by Malcolm Taylor/Getty Images)
0CT.20th 2009.pics of. scott outside property on royal york rd.scott mcgillivray,host of hgtv show income property.looking at income property in the west end of toronto showing how to shop for such properties.to go with a homes sedtion piece by rita zekas. .(COLIN MCCONNELL STAR) (Photo by Colin McConnell/Toronto Star via Getty Images)
0CT.20th 2009.pics of. scott in the basement of a property on 20th ave in mimico.scott mcgillivray,host of hgtv show income property.looking at income property in the west end of toronto showing how to shop for such properties.to go with a homes sedtion piece by rita zekas. .(COLIN MCCONNELL STAR) (Photo by Colin McConnell/Toronto Star via Getty Images)
0CT.20th 2009.pics of. scott in the basement of a property on 20th ave in mimico.scott mcgillivray,host of hgtv show income property.looking at income property in the west end of toronto showing how to shop for such properties.to go with a homes sedtion piece by rita zekas. .(COLIN MCCONNELL STAR) (Photo by Colin McConnell/Toronto Star via Getty Images)
0CT.20th 2009.pics of. scott inside a property that was unsuitable on royal york rd.scott mcgillivray,host of hgtv show income property.looking at income property in the west end of toronto showing how to shop for such properties.to go with a homes sedtion piece by rita zekas. .(COLIN MCCONNELL STAR) (Photo by Colin McConnell/Toronto Star via Getty Images)
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION


We sat down with Scott to discuss the latest season of Income Property, and he revealed some of his best expert tips for buying, selling and increasing value on a home or vacation property.

The one rule for vacation rentals
On this season of Income Property, Scott guides owners to renovate their vacation rentals to add value to their homes while increasing their income. "The best way to create wealth is to build value within your home," Scott told us. He advises not to overinvest in a space, but also not to underinvest. "The caliber of your space dictates the caliber of your tenant," he shared.

He revealed that the one big rule when making this type of investment is to make sure that you can collect one full month's worth of expenses in one week's worth of rent. "A good rule of profitability is, if a beach house's monthly expenses are $2,000 a month, it should rent for $2,000 a week, and everything else after that first week is profit," he said.

DIY renovations that increase a home's value
Scott also recommends a few simple projects you can do yourself that will raise your property's value, whether it's a vacation rental or a full-time home. These include: DIY mistakes that lower a home's value
While there are a number of little (and big) things you can do to up your home's price tag, there are also a few projects that can have a negative effect on the value of your property. Scott shared that these include:
  • Eliminating bedrooms
  • Adding features in the wrong places (i.e. squeezing in an extra bathroom that cuts into living space)
  • Improper installations (attempting to drywall, wiring your own electrical, etc.)
  • Not passing inspections
  • Installing bath and tub surrounds that attract mold
Other big turn-offs to buyers and renters
Some of the factors that can turn buyers and renters off when you're trying to sell or gather new income are often out of your control, but they're things you should be aware of. Scott shared with us the 5 biggest turn-offs:
  • Mold
  • Structural damage
  • Rodents
  • Insects
  • Lead
The biggest mistake new home owners make
"[It's] easier to help people make good decisions, rather than help people fix a bad decision," Scott shared. The most common bad decision? Buyers letting their emotions get the best of them. "People make emotional decisions," Scott said. "They fall in love with the place, and try to afford it later. This never works out well."

An ​Income Property marathon airs on DIY Network Saturday 2/20 from 7am to noon ET/PT.

More from AOL.com:
Top spring break value destinations for families
RV living in the city: dodging the rental affordability crisis
Where millennials pay the highest taxes
Read Full Story

Find a New Home

Buy
Rent
Value
Powered by Zillow

From Our Partners