If your dream career is home flipping, you might think you already know what buying and selling homes for a profit can entail. But there are many parts to the home flipping process that people outside the industry never see. Here are some of the things you’ll have to consider if you want to start flipping professionally.
Cheap Properties Can Be Hard to Find
With the economy going strong and plenty of homeowners listing their homes on the market, you can certainly find a home to purchase. But the entire point of a flip is to find a cheap home and fix it so that you can raise the price to make a profit. If you can’t find a home to buy cheaply, you won’t be able to make as much of a profit when you sell it.
Be Prepared for Hidden Problems and Expensive Issues
While you will get an appraisal and inspection just as you would for any other home purchase, there can be problems that the home inspector does not see. Since they are just taking a quick look for major issues, there can be problems under the surface that they don’t see, and you don’t anticipate until you try to make changes to the home. Once you discover an issue, particularly one that affects the structure of the home, you will have to fix it before you can list the home for sale to a new buyer.
Flippers Have to Be Salespeople Too
A key part of the flip happens after all the work is done, but before you list the home. This is the part where you prepare the home for sale. In addition to decorating and staging the rooms of the home, you may have to do some work on the outside to increase the curb appeal of the property. This might include cleaning up the exterior with a pressure washer, planting flowers and plants in front of the home and even painting the exterior surface and trim to get it a fresh look.
You’ll also have to do some research to make sure you price the home right when you list it. Look at comparable homes that have sold in the area and how much they sold for. Check out any homes currently on the market and go to open houses to see the other homes in the area. Buyers are certain to do this, so you’ll have a good idea of what they are seeing before and after they see your home.
If the home does not sell within the first few weeks or months on the market, you may have to look at lowering the price. Lingering on the market can make a home less appealing to potential buyers, so you want to price your home competitively to avoid this situation. If you find that you could use some assistance in making the sale, contact us and we can help.