House flipping refers to the art of buying a house and selling it for profit. Typically, the process includes improving the space by way of renovation and redesign – applying a new coat of paint, for instance, or attending to the property’s fixer-uppers – thus increasing its appeal, and its market value.
House flipping refers to the art of buying a house and selling it for profit.
It takes a resources and expert know-how to make flipping homes a success. A careful evaluation of the property, its location, and the climate of the real estate market must be carried out with a sharp and discerning eye.
Like the stock market, the real estate market has a cycle of high growth and demand; and, consequently, a cycle of contraction and low demand. The economy factors heavily into the whole affair, needless to say. Wait until there are favorable economic conditions and growing demand for homes – meaning that there are more people buying property than selling them, particularly in the area of choice.
Location is very much key to the property’s appeal. Get to know the neighborhood and the lay of the land to make sure that homebuyers would find it ideal to move into. Ask among the residents of the area; read its local newspaper; conduct some diligent research online and among trusted sources. Check for concerns such as flooding, safety and security, accessibility to major roads and transportation, and proximity to amenities, facilities, and everyday needs such as hospitals, schools, places of worship, markets and retail centers, and destinations for business, trade and commerce.
Often, the establishments available in the area dictate or attract the type of homebuyer – families, singles, upgraders; people looking to work or study in nearby locations. Up-and-coming neighborhoods are usually defined by a growth in construction or development within the vicinity.
Make sure that the house is in good shape before you put it up the market.
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And, of course, there’s the state, quality, the size, and the type of property to be taken into account. Foreclosures and fixer-uppers take time and commitment, while flipping in a new development, though requiring less renovation, will no doubt cost more – however, it should also attract higher-end homebuyers. In any case, make sure that the house is in sound shape, and without structural, functional, or aesthetic concerns, before you put it up on the market.
It’s best to consult experts – a real estate agent you can trust to give you sound advice; a lawyer, to familiarize you with or to handle the legal process and paperwork involved in the purchase and sale; a home inspector and a contractor to evaluate and help out with the space; an accountant, to see to the needed expenses and necessary taxes; and an insurance agent, even, in some cases.