Flipping homes can be extremely lucrative. When looking at the market and deciding what home to buy, you want to find one you can buy for a low price and sell for a high price. Most of these homes will need work done to help get them appraised for a higher value on the market. In order to get your home to sell for the best price, you need to look at other homes in the area. Look at what they have in them that your investment may be lacking, and remember not to personalize this project. You want to tailor it to the market, not you. In order to keep on this path, we created a comprehensive checklist for you to follow. These investments and repairs are the essentials to look at in your home. Keep in mind that going above and beyond may not always lead to a higher selling price. It is best to strategize and know the neighborhood.
Create a Template
Make a list of areas you will need to inspect in the home. There will be areas you can generally look at and get the idea but prepare to hire an inspector. Several areas will be critical to making sure you will not need to invest in fixing:
- Home’s Foundation
- Interior Walls and Ceilings
- Exterior Siding
Take note of any odor, molding, or water damage. If you can find out when things were last updated in the home, you can have a better idea of the property’s prior maintenance.
Hire an Inspector
Anything you notice you may need to fix, take note. Your inspector can further scrutinize areas and make sure there are no underlying issues to the home. Avoiding the unexpected can be a gamble but do your due diligence and avoid properties with extensive repairs that you cannot flip at a reasonable buying price. When you get your inspector report, you need to do your homework and see how much you will invest in repairs.
This can be where the buyer makes their worst mistakes. If you need to hire a contractor or installer for different areas, calculate this into the price. You want to have a budget set, and determine if your repairs can fit into your budget. Look at what is moving on the market in the area, and tailor the home to that style for it to sell quickly.
After going through your checklist and budgeting, you should be comfortable investing in the property. If anything does not feel right, go with your gut. You need to be extremely wary of projects out of your comfort zone as well. Get multiple quotes and have a good understanding of the market.
Tags: flipping a house
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