5 Tips For Flipping Real Estate
We have all witnessed the DIY television programs that show a buyer finding a home in the best area of town, for a very low price, fixes it up, and sells for a hefty profit! What those DIY and home improvement shows don’t necessarily show you, though, is how tough flipping houses for a profit can actually be.
House flippers have information that can be helpful to just about anyone who’s looking to buy or sell real estate. Here are five secrets house flippers know that you can apply to your own real estate adventures. These key principles can be used for any real estate purchase!
1. Location! Location! Location!
For flippers and buyers alike, location is one of the more important criteria when buying. If you are hesitating buying a home because if it’s location, don’t touch it! Other potential buyers down the road will have the same negative thoughts. If the home is in a great location, that in all likelihood, won’t be changing. Many commuters in Durham Region prefer to purchase a home close to transportation routes such as the 401 or the 407. Young families are often looking for homes within walking distance to award winning schools and quiet parks. Investors in Durham Region consider the proximity to shopping, bus routes, and the proximity to UOIT and Durham College.
2. Think Re-Sale
Don’t over invest in fancy upgrades. Flippers make a conscious decision not to “over update” their homes, and as a buyer you should also consider your comparables when renovating your home. Consider the upgrades that will be attractive to buyers who want to be in your neighbourhood. If the majority of homes in the area have hardwood floors, don’t cheap out with laminate. Don’t go over the top with marble flooring, if homes in the area don’t have the same upgrades. Consider what the majority of potential buyers will be looking for, not necessarily your own unique tastes.
3. Instant Equity
House flippers know not to buy homes at or below market value. These properties need to be well-underpriced so the flippers have immediate equity. This allows purchasers to quickly make repairs and sell without having to wait for the market to catch up to the price they want.
Homebuyers can adapt this rule for their own buying strategy. It’s not easy to find a house that’s extremely underpriced ? and if you do, it’s probably not one you’d want to live in while you’re fixing it up ? but you can aim to buy a lower-priced home in the neighborhood you want, live in it and make modest repairs, and then sell it years later for a profit. By that time, the market value should surpass your purchase price plus improvement expenditures.
Working with a real estate professional will help in finding these “underpriced” homes quickly. If you wait to find them on your own, it will most likely be too late! We work with our Buyers to find the best valued homes that fit their desired price range and specific criteria. Call Team Bryant Today!
4. Get An Inspection
A home may appear OK on the surface, but professional flippers know that problems can lurk beneath what you see. Home inspections are key to helping to minimize fix-up costs. Make sure you know exactly what you’re getting into so that you can plan your budget accordingly. These inspections are essential to understanding the difference between a cosmetic fixer upper and a serious rehab. We can suggest a number of qualified home inspectors that we have worked with over the years. Call Team Bryant today to get our experience buying and selling real estate working for you.
5. Hire professionals
When it comes to home repairs , the old saying “You get what you pay for” rings true. Home improvements and upgrades affect both your enjoyment of your new home while you live in it and also your ability to sell it quickly (and at a good price) when you’re ready to move on. If repairs and updates are completed in a professional manner, the likelihood of increased profits is improved.
If you are looking to buy or sell real estate in Whitby, Oshawa, Uxbridge, of Durham Region, contact James or Patrick Bryant today.
