Buying, remodeling, and selling a home in a short time is a big undertaking even for the most seasoned agents or investors who do home flipping before selling them. It may sound like a fun, easy way to make fast money on a real estate investment, but flipping a house isn’t as simple as it seems. So what are the things you need to know to have a successful sale, and fast?!
House flipping is when a real estate investor buys houses, renovates and then sells them for a profit. In order for a house to be considered a flip, it must be bought with the intention of quickly reselling. The time between the purchase and the sale often ranges from a couple months up to a year. In most cases, an investor buys a property that has potential to increase in value with the right repairs and updates. After completing the work, they make money from selling the home for a much higher price that what they purchased it for.
Know The Market. A lot of house flippers get excited about their next project and can ignore this less glamorous side of the business. If you don’t have a good understanding of the market, you could run into different issues. Normally, a real estate agent can help you target your home search to the right neighborhoods based on your price point, budget for renovations, and desired profit.
Know Your Budget. Make sure to identify any cosmetic projects as well as any expensive overhauls like plumbing or electrical problems. If you don’t have a background in construction, a contractor can tell you what needs fixing and how much it will cost. Surprise repairs can make or break a flip, so be sure to do your homework here. Know your price range for purchasing a home, making any repairs, completing renovation projects, and selling it before you seal the deal.
Know The Smart Renovation Tips. Don’t forget that big renovations—like kitchens and bathrooms—can easily make or break your flip. That’s why it’s important to know your budget upfront and then make sure your updates stay on track and actually boost the value of the home. The key to making smart remodeling decisions is realizing that creating the right “look” doesn’t require buying the most expensive materials. You’ll spend less, with a lot higher likelihood of recouping your costs when you follow some renovation techniques.
Know Your Agent’s Expertise. House flipping is a risky, speculative investment that offers no guarantees. You’re essentially gambling that a run-down, outdated house will sell for a projected higher value if you spend an estimated amount of money on repairs and upgrades. An agent is an excellent financial resource to help you figure out exactly how much you can afford to spend on your fixer-upper. Once the home is completely refurbished and ready to list, your agent changes gears again and becomes a master at marketing and sales to get your flip sold fast and for the most amount of money.
if you need to know more information and tips on home flipping before selling, and want to sell your home fast, feel free to contact us at 216-282-4332. Visit our website for more of our services at www.cpdhomes.com.