Flipping homes is a hot topic these days. Here are 10 tips to help you find the perfect flip from HGTV’s The Big Flip renovator’s John Stassen and Randy Mackay.
- Find properties that are diamonds in the rough – homes that are rundown in comparison to those around them – as these often have a low list price.
- Are the surrounding properties well maintained? This can add value and clinch a sale when your house goes back on the market.
- Scrutinize previous renovations. Poor quality workmanship can mean you have paid a premium for finishes that you will have to repair or replace yourself.
- Can you add bathrooms, storage or enlarge a small kitchen to meet the needs of today’s average family? If you can’t, walk away, as these features often make or break a sale.
- Ensure you do a thorough home inspection before purchasing properties – this could save thousands of dollars in the long run.
- Identify your potential buyers (i.e. young professionals or families) and design the house with their needs in mind.
- Find a real estate agent who understands the market. There are thousands of real estate agents; get one who is experienced and understands the business of flipping houses!
- Do your research and find areas that are up and coming. Neighborhoods that are in the early stages of being gentrified often contain homes that offer large returns on their investment.
- Be realistic with your budget and always leave room for hidden costs. Early budget optimism can mean cost cutting later on, which means sacrificing quality – and profits – in the final sale.
- Keep your eye out for properties with good layouts that can be easily updated with new paint and trim. You may get lucky and find a home that’s a good price and only needs finishing touches, adding tens of thousands of dollars with minimal investment.
(Article by John Stassen and Randy Mackay / www.hgtv.ca)