Posted In:Buying, Home Improvements, Home Maintenence, Landscaping, Projects, Real Estate, Real Estate 101, Realtors, rental, Selling, Staging, USA
Flipping houses has become comparable to day trading and is a great way to get ahead financially… if you do it right. Renovating a home requires free time, patience and a lot of upfront money. It also helps to have the some relevant skills and know how to get started. Don’t make these 8 mistakes if you’re a first time flipper:
Don’t Buy With Emotion
Rule number one: Don’t buy a house just because you love it. Just remember that ultimately someone else will be living there. Purchasing a home based on your emotions is never a good idea.
In order to get the best return on your investment you want to get a home for the best purchase price possible. Your main focus should be buying in a great location. A home that is close to shops, schools and transit stops are always sought after for the modern age buyer.
Low Budget/High Budget
Intending to renovate a fixer upper with cheap materials and budget finishings is not the way to go. Doing this will not attract a buyer to match your price point. A move in ready home with high-end finishings gives onlookers peace of mind that no renovations will need to be done.
On the other hand if you purchased a home in an older area where neighboring houses have not been updated don’t put more work into the home than is necessary. It will be tough to sell your stunning high-priced flip in a mediocre neighborhood.
In the selling business there is a season for everything. The best times to sell will vary by state and current market trends. You can be sure however, that selling in the northern states in the dead of winter is not a great idea. Putting your home up beginning or mid-week is smart if you’re looking to create a buzz for an open house on the weekend.
Visit Houzz for some fantastic staging tips and tricks.
Lack Of Or Improper Staging
You may think you can skip out on the cost of staging but it is a very important step in fact. Properly staged furniture is the best way for a potential buyer to visualize the space that they might call home. If your eye for design is lacking, don’t skimp out, hire a professional. According to experts a beautifully staged home can bring in up to 20% more than a non-staged home.
Biting Off Too Much
If you’re renovating a large portion of a home it can be easy to go back and forth in between projects. You get tired of working in the bathroom so you move to the kitchen and so on. Learning to properly manage the renovation of a property can save you oodles of time and money. Don’t let projects sit. Get them done before you move onto the next task.
You’ve spent a fortune on the home and you forgot about landscaping. Always take into consideration a nice chunk of the budget for landscaping. The curb appeal is the first thing that draws buyers to a home. A low-maintenance, welcoming front yard can go a long way for prospective owners.
Here are 7 landscaping design tips for beginners from BHG.
Getting the proper inspections are so important to make sure the home checks out. A home inspection can save you thousands in the long run. If you’re new to flipping, do a walk through with the home inspector to make sure you know what to look for when making the plunge on a home. Getting educated on the big ticket items will help you on your next project.
If you’d like to dive into the house flipping business but just don’t quite know where to start, find a mentor. Having someone beside you to teach you the ropes and offer advice along the way is extremely advantageous.