We all know a house could be a great investment. You can live in it, pass it down to your children, or even renovate it and flip the house.
If you’re a person who enjoys hands-on projects, house flipping could be a lucrative and fulfilling vocation. Perhaps you’ve spent a few years in your starter home, and you’re thinking about flipping it. Here are five tips for getting started.
Asses Other Houses In the Neighborhood
When it comes to selling a house, there are three factors realtors look at: location, location, location. Unfortunately, this is the one aspect of your home that you cannot change.
A lot of newbie house flippers try to overcompensate by over-renovating, and then end up with a very nice house that they cannot sell because it’s overpriced for the area.
To avoid this, look at the real estate market in your neighborhood. Which houses sell the fastest, and what features do they have in common? This will give you an idea of what buyers look at.
Consider Your Home’s First Impression
A house could be a palace on the inside, but if there is a bad first impression on the buyer’s arrival, it can be extremely hard to recover from that.
So take a very close look at your house, how does it look? Are the sides of the house power washed? Are the air conditioners in good condition? Is the paint on the door frame fresh? Are the window casings in good condition?
A lot of these fixes are low-cost cosmetic things that drive the sale.
Focus On The Kitchen And Bathroom
When it comes to the interior, there are two rooms that sell the house: the kitchen and the bathroom. Not everyone has use for luxuries like an in-home theater or backyard pool, but everyone will use the kitchen and bathroom every day.
For this reason, dated kitchens and bathrooms detract from a home’s value. While the average kitchen/bathroom renovations have a price range in the tens of thousands, most people investing that money recoup the cost when the sale is made.
If you have the money to invest in kitchen and bathroom renovations for a resale, they usually end up paying for themselves.
If you don’t have that kind of cash on hand, do not despair! Not all kitchens and bathrooms require thousands of dollars to be poured into renovations.
That said, you definitely want to make updates to the existing rooms. Replace old fixtures in the bathroom. Repaint and refurbish the kitchen cabinets. Just making a few updates can make the kitchen and bathroom look beautiful and modern.
Go For More Generally Appealing Home Decor
When it comes to decorating your home in order to sell it, keep the personal elements of your style out of it.
You might not like living in an IKEA showroom, but those showrooms are designed to be a blank canvas to the mind. The point is that any customer walking into the store can begin to imagine themselves in the space, thus driving the sale.
When it comes to big-ticket selling items like countertops, bathroom fixtures, carpeting, and wall finishes should all be selected with mass appeal in mind. Choose a neutral color for all of these.
When it comes to choosing a selling color scheme for your home, stick to soft neutral tones. Use bright colors to draw attention to specific home features, but they should be only used as an accent.
Before you begin renovations, draw up a budget. The worst thing a flipper can do is over-renovate and wind up with a house that is overpriced for the area.
Before you begin your renovations, draw up a spreadsheet of how much you expect to spend, where you want to allocate that budget, and how much you expect to get in the sale.
Starting with a game plan before you flip the house can maximize your resale value while staying within budget and making your house one of the best assets to invest in.