Quite a lot of people are discovering that there’s profit to be made by buying a house and then selling it for a higher price a short while later. While for most people, real estate is a long-term investment process, it is possible for you to make money quickly simply by house-flipping.
You just need to be smart about it, and you have to be unemotional so you don’t fall in love with the property you’re buying and selling. If you’re buying real estate in Repentigny, you want to buy low and then sell high to your potential homebuyers. You want them to fall in love with the house you’re selling.
It’s not going to be as easy as they make it seem to be on TV, however. But if you’re determined to make a go at it, you need to keep the following guidelines in mind.
- Keep the figures in mind. You have to know exactly how much you’re spending on buying a house and on renovations. This means taking into account the loans you need to take, the taxes you have to pay, and the expenses you need to cover for maintenance and utilities while you do the renovations. The costs of the renovations must also be computed to last dollar, as it’s very easy to underestimate the labor and materials cost.
Finally, you have to have a clear idea of how much you’re selling the property for. This means looking at similar sales in the neighborhood to gauge the likely price you can get.
- Think like a real estate agent. You have to know just what kind of a house and what kind of a neighborhood your potential buyers will want. You have to be familiar with your market, and do proper research on recent sales prices in the area with the kind of buyers you’re targeting. You can make a quick sale if the demand is high, or you can rent out the property of a year or two until the area becomes popular among prospective homebuyers.
- Renovate with the buyers’ preferences in mind. You never renovate the proper to with your own personal ideas of what’s great. Instead, you need to put yourself in the shoes of your buyers and put in renovations they would want instead.
If you’re selling to retirees, you’ll want to use gentle slopes from the parking space to the front door instead of steps. For young families, you want open spaces for the family space.
- Emphasize the selling features. It’s not enough that you put in the renovations in the house that will benefit your potential buyers. You want to make sure they actually realize that what you’re offering is good for them.
This also means educating them on any new types of fixtures and appliances that you’ve included to go with the house. If you advanced entertainment or security systems, make sure you include instructional manuals that show the benefits and the directions for use. You want buyers clear about the advantages and benefits they’re getting, and you want them confident that they won’t have trouble using these features.
- Price it right. Basically, don’t set the price too high. It’s easy enough to overvalue a home in which you’ve worked hard to make beautiful again. But in flipping houses, there’s no room for such sentiment. Instead, the key is to price the house just a bit lower than expected. This tends to result in several offers and you can end up with a final price higher than what your original asking price.
You need to be efficient, emphatic, and unemotional if you want to be successful in flipping houses. Do it right, and this sort of job can provide you quick profits for many years to come.