Flipping a house may not be as easy as you think. This blog will illustrate some of the common problems buyers have when they look to flip a property, as well as ways to help with these problems.
If you’re looking to flip a house, contact one of our experts at Pine Tree Financial Real Estate Group.
Once you have narrowed down a particular property, you need to study current market conditions and the potential for home sales. You can also attend a brokerage seminar on the market for rehab properties to get a better idea of what buyers in your area can expect for their money.
You can list your property for the amount you want, but the only way to complete the sale is to find a buyer who is willing to pay that price. As the financier of the purchase, the appraiser will evaluate the home at the offer price with a reasonable comparative sale.
Remember that many states require you to disclose asbestos and lead and asbestos-contaminated paints when it is time to sell your investment property, and inspectors are more likely to point out these problems to potential buyers.
If you buy a house with asbestos and want to flip it, keep the cost of mitigation in your budget for the house. It’ll be important for the health and safety of any buyer.
Bathrooms in a house are often the last things to be updated because they take a lot of work. Make sure to include upgrading the bathrooms in your budget, and fix the easy things within them, such as the flooring or tile or paint.
These are all easier to fix than the actual plumbing, plus will add value to the house when fully upgraded.
Many times the house you’re trying to fix has older appliances that need to be updated. It’s important to account for the cost of these appliances when looking into the cost of clipping a house. To save some money and time, only upgrade the oldest appliances.
If all of them are at least 10 years old, unfortunately, you’ll probably have to upgrade all of them, but if they’re younger than that you can pick and choose what you want to be upgraded, saving you some money.