A practice as old as time, flipping properties – also known as fixing to sell – is an excellent way of exploring the renovation and remodeling world, while getting on the property ladder at the same time. Now to some, it might seem quick and easy. But it isn’t quite as simple as buying a house, fixing it and then selling it straight away.
There are a multitude of other factors which have to be considered when venturing into this world. You don’t need to worry though. We have created a helpful guide detailing all you need to know about flipping a property for profit and doing so successfully.
Consider the Location
The first step before purchasing a property – whether to flip or not – is to consider the location of the property. What amenities are in close proximity, and what kind of buyer will that attract? Will you tailor the renovation to the type of buyer, or tailor it to relate to other homes in the area?
If you are purchasing a property in an area that is highly sought after, you are guaranteed an easy profit, as the home would not be on the market for long.
On the other end of the scale, if you are purchasing a property in a less desired area, you must be prepared for the eventuality that the property might not be sold straight away. Remember to make provisions for both options, just to cover all your bases.
The size of the property you are aiming to flip is another important factor to consider. Is it going to be a two- or three-bedroom home, or a studio apartment? Different options will of course cost different amounts of money, and will in turn, provide different levels of profit.
When considering the size of the property, it is always best to consider the renovations that you will be completing. Will you be adding or taking away certain aspects of the home, such as a washroom or en-suite?
For help with planning the remodel of your property, to ensure you maximize the profit, consider using the services of professional remodelers like that of Beattie Development.
With the experience of dealing with large houses through to studio apartments, you will be in safe hands throughout your entire project. For more information about the services that professional remodelers provide, visit beattiedev.com.
Don’t Be Greedy
When you have completed the remodel, and the property is looking its absolute best, it is time to list on the market! One consideration to remember, is you want to get a profit for your remodel, but you must not be greedy.
Calculate the money you spent purchasing the property, and how much money was invested in the remodeling.
Figure out what is the most achievable sell price, and work from there. There will be wiggle room for negotiating a higher or lower price at point of sale. Putting the sale price too high might result in the property lingering on the market for longer than you want, risking you losing out on profit as the property gradually decreases in value.