With the housing market in the United States finally looking up, house flipping is on the rise as people look for ways to leverage real estate to their financial advantage. If you’re looking to begin flipping houses for profit, follow these tips to help you succeed.
1. Know the market.
If you’re looking to invest your time and money into a property, it’s important that you are aware of what’s going on the the local market. You should be asking yourself questions like:
Is this an area where prices are rising?
What do the local demographics look like?
How strong is the education system in the district where your property lies?
Make sure you do your homework on the market and check up on things like recent sales and the average length of time properties similar to yours are sitting on the market. Knowing the market can help you decide whether it’s the right time to sell your property or if you should hold onto it until a more optimal time.
2. Show off your hard work.
You but an incredible amount of time into turning your home from a pick-me-up to a must-have, and you shouldn’t be afraid to brag about it. Make a list of all of the work you’ve put into the house; detail any systems — electrical, HVAC, water heaters, appliances, structural repairs, etc. — that have been replaced and make note of any replaced windows fixed roofs, or any other work that can give the buyer peace of mind. Share your list with potential buyers, real estate agents, home inspectors, and appraisers
3. Don’t overprice your property.
This is a big one, because if you overprice your property it will not attract buyers, and you will end up paying much more for it in the long run by having to hold onto the property for longer. While it might be tempting to be biased when pricing your home — after all, you put so much hard work into it — but you have to keep in mind that the buyer has no idea how much time and effort it’s taken to make the house look this good; all the buyer knows is how much more or less your house costs than comparable properties within the same location.
4. Have patience.
Any professional house flipper will tell you that it takes time and patience to turn a profit, and you have to be willing to put in the effort. It’s easy to hire the first contractor you find within your price range, just as it’s easy to hire a realtor to sell the homes for you. However, if you’re looking to make money and build yourself a strong business, take your time and do your research. Find yourself reliable contractors and consider selling your house yourself to save on realtor costs.