Wednesday, March 15, 2017 - Article by: Leah TenBieg - Prospect Financial Group, Inc. -
House flipping has become a popular investment as of recently. Simple fixes to a house that needs a makeover can drive up the price for a nice resell. However, house flipping is not as easy as it looks or sounds. See below to be aware of some common mistakes investors make when trying to sell a house for a higher price than what they paid:
Not getting the house inspected before purchasing
Before making the decision to flip a house, be sure to get it inspected. In fact, it might be a good idea to have a couple houses inspected if you are having trouble deciding which one to remodel. This may sound like common sense, but you would be surprised by how many house flippers automatically assume they can fix any repair and still sell the house for a higher price. When getting your prospective house fully inspected, take note of how many renovations need to be done. This will allow you to plan ahead financially. You never know, you may find out that the house is infected with mold that could cost you way more to fix than what you originally anticipated. You could dodge some houses that require hefty renovations and land the perfect house to flip.
Mapping out your time
House flipping is time consuming. This is not something that can be completed successfully in just a week. Map out a plan after you get the house inspected to make sure your renovations align perfectly with one another. Set yourself a deadline and leave enough room for any unexpected hold-ups.
Renovating the house as if it's your own
Once you have chosen and purchased the house you plan on flipping, exterior and interior decoration needs to be done in order to attract potential buyers. This part seems like the most fun step you will take during the process, but make sure you are keeping in mind that this is not your own home. By sticking to neutral colors for the walls and simple outdoor landscape designs, your circle of potential buyers will widen.
Your profit after flipping a house can be huge. Nevertheless, it's always a smart idea to plan ahead as much as possible and to try to avoid mistakes that have commonly been made in the past.
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