- Research your market thoroughly to know what buyers want and set realistic prices for your flip.
- Choose properties wisely by looking for builds with good bones and desirable features.
- Hire experienced contractors to do the job right, within budget, and on time.
- Work with a reliable real estate agent to price the property correctly, find qualified buyers, and close the deal quickly.
Flipping houses can be lucrative, but it’s not as easy as it looks. It takes skill and savvy to purchase a home, invest in necessary improvements, and successfully sell the home for a higher price than you paid. Only about one in four house flips turn a good profit, so it’s essential to have a solid plan and the right strategies for success.
Luckily, several strategies can help you make more money when flipping homes. Read on to learn how to maximize your return on investment (ROI).
1. Research Your Market Thoroughly
Before you buy any property, be sure to research your market thoroughly. Look at comparable properties that have recently sold and pay attention to the common features of these homes. For example, if all the homes in the area feature granite countertops, stainless steel appliances, and hardwood floors, then those are must-haves for any house you flip in that location. Knowing what buyers want will help you create an attractive property that will fetch top dollar. Other things to research include the following:
a. Average sales prices
Many buyers have a specific budget in mind and won’t pay more than the average price for similar homes. Knowing the average sales prices can help you set a realistic price for your flip.
b. Average rental prices
If you cannot complete the flip in time, renting the property may be a viable option. Knowing the average rental prices in the area will help you determine how much rent to charge and whether renting is a better option than flipping.
c. Local zoning laws
Different regions have different zoning laws, which can affect how you use the property and what improvements you can make. Be sure to research any relevant zoning laws in the area so that you are up-to-date on what is and isn’t allowed.
d. Current trends
It’s also important to keep an eye on current trends in the real estate market. Knowing what features and amenities are popular with buyers can help you decide how to improve the property and maximize your ROI.
2. Choose Properties Wisely
Not all properties are suitable for flipping. When choosing a property for sale, look for builds with good bones—in other words, ones that need cosmetic improvements rather than structural ones. Structural repairs can be costly and time-consuming, so it’s best to avoid them as much as possible. Additionally, look for desirable features like updated kitchens, bathrooms, or large yards. These attractive selling points will help you get more money from your flips.
Ensure you also conduct an in-depth inspection of any property you’re considering. A good inspector will be able to detect hidden problems or potential issues that could affect the sale of the property. Choosing the right property is key to a successful flip. If you choose wisely, you can make more money from the sale.
3. Hire Experienced Contractors
When renovating a property it is important to hire experienced contractors who can do the job right the first time—and within budget! Experienced contractors are familiar with local building codes and regulations, so they understand what needs to be done to bring the property up to code without breaking the bank. Additionally, ensure your contractors provide reliable estimates so that you know exactly how much money is going into each renovation project before work begins—no surprises!
Try to get multiple bids for each project to ensure you get the best price. Don’t be afraid to negotiate on price, and don’t be afraid to walk away if the contractor isn’t willing to budge on price. Remember, time is money when flipping houses, so hire reliable contractors who can do the job quickly and efficiently.
4. Work with a Reliable Real Estate Agent
Finally, ensure you work with a reliable real estate agent who knows your market. A good real estate agent can help you price the property correctly, find qualified buyers, and close the deal quickly. They can also provide valuable insights into the local market, advise on how to stage the property for sale, and help you navigate any legal issues. Working with a knowledgeable and experienced real estate agent can make the process of flipping houses much smoother—and more profitable.
Flipping houses can be a great way to make money if done correctly. However, there are many things you need to consider when deciding which properties to purchase and how much to invest in renovations. Be sure to follow these strategies to maximize your ROI and ensure you make the most money from your house flips. Flipping houses can be lucrative and rewarding with the right strategy.
