Location is everything when purchasing the right house to flip. It’s the one thing about a home you can’t change. When scouting property be sure to do a drive-by of the home so you can see its physical location and surrounding within the neighborhood it sits. What you’re looking for are any negative landmarks that might cause the home to be less desirable to potential buyers. Knowing the immediate drawbacks that are out of your control will help in the financial planning of the flip. You will be able to discount for the negatives and consider them when coming up with your list price.
Before you start renovating doing a walk through with your contractor is always a good idea. Making a list of what needs to be done before what you want to be done is very important. Systems such as; plumbing, electrical, sewer/septic and structural issues can be quite costly and need to be addressed before you even begin. We like to work from the inside out. Making sure the home is structurally sound and all systems are functioning safely before making the house “pretty” is a vital step in the process. Make sure what people can’t see is just as clean as what they can. Staying within your budget, knowing what sells in the area and making the appropriate modifications will help keep you on point. The goal is to “get in and get out” as quick as possible. Time is money and the longer you have the house the less profit you make in the end.
Adding staging to the budget is a good idea. The backdrop you create for the staging will help showcase how the home lives not just how it looks. You’ve already chosen to invest in this property so why not showcase the home to its potential by giving buyers the vision of completeness. It’s like wrapping a present and leaving off the bow. Sure, it looks fine but it would look so much better with a little ribbon on top! Statistics prove homes that are stage sell quicker than when they are not. And, anything we can do to get our flips sold fast and with ease is considered an asset.
You will definitely want to have a real estate broker in your back pocket. Enlisting the help of an agent you trust will ensure that your time is spent doing what you do best; scouting, purchasing properties and coordinating the renovations. Leave the selling of your flips to the experts. With their market and pricing expertise your realtor will help you stay objective, free up your valuable time, and ensure your home is visible to all potential buyers. They are advocates for your business and will have the potential to make you more money in the long run. All you have to do is give them a beautifully renovated home to sell!