In the last decade, flipping houses has become a popular pursuit for people trying to make a quick dollar in real estate. On the television every night you can see show after show of people turning nasty old houses into works of art. However, that is only television and in a half hour they can’t show you what all went into that project, or the level of talent those networks have on tap. Most people are over their head when they try to do a flip, and many must settle for breaking even. Here are some tips to help you do it right.
- Research Your Market: Your best chance to turn a profit is to renovate a home in a desirable neighborhood. Find out where the hot market is. After that, have a look and see what is available. If you find a home there that is going cheap, and you can see the potential, you might have a winner.
- Make a Full Plan: Before you make an offer, you should know exactly what it is you want to do with the house and how much it will cost before you ever make an offer on the house. This way you are not forced to compromise or do a half job and hope it’s good enough
- Focus on the Features: Most people, after viewing a house remember only the special features. The things that made them go wow. There are three rooms where that occurs. The kitchen, the master bedroom, and the master bath. If you deliver a knockout in those rooms, they will be lining up to make you an offer. For these three rooms it might be an idea to bring in a specialist designer. For example, Brindabella can help you design these significant areas with a professional touch.
- Avoid Common Mistakes: People who are inexperienced in renovations often make these mistakes. Overestimating your skill level, not giving yourself enough time, underestimating the costs, and not building for the market.
- A lot of these lessons are learned the hard way. If you can’t afford to fail on your first try, it might not be the business plan for you.
If you are new to flipping houses, make sure that you are going to be working with qualified tradesman. And it is even better if you have experience in either building or design. If you do everything carefully, this can be a profitable business, but there are a lot of risks and no guarantees.