Watch HGTV’s shows about flipping houses and you might think that this is the secret to getting rich. However, to ensure that the effort is profitable, a lot of work and research should precede buying and selling a house. So before starting your career as a house flipper, here are some important variables to consider.

Know the Value of Properties

First, you’ll need to be able to determine the current and potential future value of the properties you might want to flip. Working with real estate professionals and appraisers is certainly advisable, but having your own knowledge of the market in an area and the potential to make money remains vital. For this reason, many beginning house flippers start within their own neighborhood or one they know well.

Know the Cost of Repairs

How much profit results from flipping a home will be directly tied to the associated costs of the improvements, financing, how long it takes to complete the work and obtain a buyer, as well as the additional expenses necessary to resell it. To determine not only what needs repairs on a property but also how much those will cost, call in the experts to give you estimates. Additionally, having your own general familiarity with the pricing of common renovation, repair and/or updating projects will be beneficial when you initially tour a property.

Know How to Make Your Own Improvements

Being able to DIY some of the needed improvements is an important part of flipping a house. By saving labor costs, you’ll increase the overall profit at the end. Even if that simply means you do the demo work, every penny saved in labor increases the bottom line. Moreover, if you are able to install your own flooring, update lighting, or even hang new cabinets, your profits will be maximized when you eventually resell the home.

Know Current Trends

When fixing up a home to sell, it’s definitely not about what you like. Update using the latest trends preferred by today’s buyers and what is popular in the area. You’ll inevitably increase the number interested prospects if the completed renovation embraces fashionable styles when choosing finishes for your project.

Lastly, assemble a team of experts to have on hand when you begin buying homes to flip whose advice can be relied upon to help you make good decisions. Regardless, be knowledgeable regarding the basics of financing, value, and repairs or improvements so that you don’t get stuck with a losing property.

For additional information and advice regarding house flipping or to find a suitable property for your plans, please contact me today for a consultation. I will be happy to answer any questions you may have about the home buying or selling process, help you to find a new home or determine the value of your existing property.

 

Allyson Hoffman, ABR, ACRE, CDPE, CRS, e-PRO, GRI, SFR, SRES
RE/MAX of Barrington 
Serving Chicago's North Shore, North and Northwest Suburbs
847-310-5300
[email protected]

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Allyson Hoffman is your ultimate real estate resource for Chicago's North Shore, North and Northwest Suburbs and surrounding areas. Visit my website for detailed information regarding today’s real estate markets.    

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