5 Tips for Successful Home Flipping
1. Know the Market
Do you live in an already established market? Are prices moving up or down? Or are you in that sweet spot of a neighborhood that’s got potential and on the rise. One thing to ask is whether the schools in your area will attract families. Knowing your local market is fundamental for choosing the right home to buy and sell. Know the caps on your market, check out recent sales, and get an idea for how long homes stay on the market.
2. Crunch the Numbers
Get really clear on how much you can spend on both the property, and the home renovations. Some other things to consider are the costs of short term loans, maintenance, taxes, and even utilities. You’ll need to know how much you are willing to spend on manual labor and materials. Once you know these things, and have accounted for some buffer and risk, only then can you start looking to purchase that home.
3. Make Improvements with the Buyer in Mind
If you are in a neighborhood with lots of retirees, consider the typical age of a buyer when you make those home improvements. Lots of elementary and high schools, consider what a younger family might want. Think about how many bathrooms the house will have in relation to large families with kids, and even split plans. And a nice yard is always enticing to families with you kids and pets.
4. Don’t Price Your Home Too High
You may be proud of your work, but don’t let that cloud your judgment. Remember, no one saw the house before you started, and they probably don’t care how far it’s come along. They are looking at dozens of homes and all that matters is if yours stands out. Consider underpricing a bit to get the fish to bite, then let them bid it up to where it needs to be.
5. Help to Educate the Buyer
An informed buyer is more likely to make a purchase, because they feel confident that their decision is rooted in knowledge. Over deliver and give them more than they bargained for. Provide instructions, note the details, and make sure they are ware of every last bit of information that makes them feel emotionally confident about settling down in this new neighborhood.