Pay for a Professional Inspection
If you’re not in the construction business, it’s easy to miss somemajor defectsof a property, from a faulty foundation to antiquated electrical wiring. Avoid an expensive headache by getting a professional inspection before you buy a property. The cost of an inspection is nothing compared with the price of hiring a crew to redo the roof or correct structural issues.
Related:11 Common Problems Home Sellers Try to Hide
Get a Building Permit
While savvy, capable flippers can renovate a home themselves, failing to go through the proper channels may lead to steep fines,lawsuits, and other complications that can kill a sale. For example, banks and mortgage companies often hesitate to make loans on remodeled homes that don’t abide by local codes. Obtaining a building permit ensures peace of mind throughout the house flipping process.
Related:10 Signs That Fixer-Upper Might Be a Money Pit
Know the Neighborhood
Not all fixer-uppers are bound for success, and location is a major determining factor. Always think about the intended buyers when choosing a neighborhood. For example, if you want to market the finished home to families with young children, you’ll have better luck if it’s located in asafe neighborhoodwith schools nearby.
Related:America's 50 Most Exclusive Neighborhoods
Hire a Real Estate Agent
Whether you’re buying or selling, hiring a professionalreal estate agentoften helps you get a better deal, according toZillow。这是因为代理知道如何谈判,they have extensive knowledge of market conditions and comparable sales.
Related:12 Things Realtors Look For in Homes of Their Own
Don’t Expect Profit
Despite what you see onreality TV, house flippers aren’t guaranteed a profit. In fact, according toTimemagazine, 12 percent of investors took a loss or barely broke even. If you go into house flipping as a business, expect to have a few less-than-stellar sales alongside your profitable ones.
Related:10 Reasons Why I Should Have Never Bought That Fixer-Upper!
Don’t Over Improve the House
When renovating a home, you may be tempted to add trendy details and high-end touches. Resist the urge! According toUSNews.com, successful house flippers don’t over improve their properties. The more you spend on elaborate renovations, the higher you’ll have to price the house in order to make a profit, so it pays to stick with essential repairs and basic features in your fixer-upper.
Related:13 Improvements Most Homeowners Get Wrong
Know When to Call a Professional
Enthusiastic flippers can get in over their heads during the renovation process. While replacing carpeting and painting walls are DIY-friendly projects, other repairs require professional help. Call acontractorfor full kitchen and bath renovations, electrical wiring problems, plumbing and HVAC repairs, and room layout changes.
Related:Don't Try This at Home: The 7 Most Dangerous DIYs
Have a Plan B
It’s a fixer-upper’s nightmare: Thereal estatemarket in your area takes a turn for the worse, preventing you from selling the house. This troubling situation becomes less scary when you have a backup plan. For example, you could consider renting the house until the market makes a comeback or you could offer owner financing.
Related:12 Reasons Why Your House Isn't Selling
不要忽视拉ndscaping
Don’t underestimate the importance ofcurb appeal。No matter how much love you've lavished on a home's interior, an unattractive street view can drive away potential buyers. Although you don’t need to dump tons of money into retaining walls and raised flower beds, you should take steps to present an attractive exterior. At the very least, regularly mow the grass, trim overgrown hedges, and remove debris from the yard.
Related:14 Insanely Easy Curb Appeal Projects You Can Do in a Day
Don’t Quit Your Day Job
The real estate marketis incredibly volatile. You certainly don’t want to quit your job only to lose money on your fixer-upper. Play it safe: Until you’ve successfully flipped a few houses, maintain another reliable source of income.
Related:买一个“丑陋”的十大理由
Heed the Warnings
Flipping houses can look like a fun and exciting side-business or hobby, but often TV shows don’t capture the tedious parts of this endeavor. If you still think this is the right project for you, just make sure to be prepared.
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