Wednesday, March 20, 2019
Real Estate Elevated Review: 4 Mistakes to Avoid When Flipping a Home
1. Not Having a Budget
A budget is crucial to ensuring you maximize your profits in the sale of the property. If you’re not carefully watching your expenses, you’ll soon eat up all of the profit you could have made on the house. Or worse, you could end up putting in more than you’re able to sell the house for. Stick to a strict budget during the remodeling process, and leave room for unexpected expenses.
2. Not Doing Thorough Market Research
Housing markets vary from city to city. Even within that city, the market can change quickly from month to month. In order to be successful at flipping houses, you’ll need to do thorough market research before you buy a property. Compare homes of similar sizes and with similar amenities to make sure you’re getting a reasonable deal. After you’ve made a purchase, you’ll want to continue to keep a pulse on trends.
3. Making Renovations Without the Buyer in Mind
Flipping houses is a very different process than a personal home renovation project. If this were a home you were going to live in, you might make unique design choices to reflect your personal style. But the most successful house flippers strike a perfect balance of making renovations that are on trend, universally appealing, and affordable. Be sure to keep the buyer in mind when making renovation decisions, or you may end up with a house very few people are interested in seeing.
4. Overpricing Your Flip
After all your hard work, it’s natural to feel like your property may be worth more than it actually is. Overpricing your flip will mean it sits on the market longer than other more affordable homes. Since time is money in the real estate industry, you want to avoid this issue and set the price right from the start. Do your homework and set a realistic selling price.
Learn More from Real Estate Elevated
By following these tips, you’ll be able to avoid many of the brutal lessons other real estate investors have to learn the hard way. Real Estate Elevated offers tons of other helpful advice from experts in the industry. If you’re an aspiring real estate investor or a seasoned pro looking to take your business to the next level, sign up for our free course today.