Jul 20, 2017
The first thing you need to know when flipping a house is that time is money. This means that you don’t really have time to waste on rookie mistakes. Of course, nobody was born knowing everything, so it’s okay if you make a mistake from time to time. However, it’s good to be aware of them and it’s also good if you keep an eye on real estate deals. For this, you can visit site or call specialists.
- Overlooking a home inspection.
Many people make the mistake of not getting a home inspection. Even if you plan on making some major changes to the house, remember that you still need an inspection. Obviously, if you are planning on tearing down the house, you won’t need to have one. House flipping often includes doing some aesthetic changes. You may need to open a wall or to remodel a bathroom.
- Overestimating your skills.
Starting out from the desire of cutting down money, many people think they can do everything around the house and not pay a specialist. However, if you overestimate your skills, the final work may be of poor quality, which may mean you won’t get as much money in the end. It’s okay not to know everything, so if you’re in doubt, ask for professional help.
- Underestimating the final costs.
One of the biggest mistakes you could make is to underestimate the final costs. Flippers that don’t have enough experience often tend to fall into this trap. They usually add the purchase price and the renovation costs and believe that this is the final cost. Nothing more wrong. You should always include the inspection and appraisal costs, state and federal taxes on profits, the commissions for real estate and lots of other fees that are necessary when you buy or sell a property.
- Not being polite.
If you are planning on doing this all by yourself, you have to know that you will still need to interact with some people. Successful flipping means convincing people and being charming, after all. Ideally, you should have a team of craftsmen, lenders, professionals and suppliers which you can rely on. And if you’re not polite, it will be really hard to do it.
- Selling the house too fast.
Many flippers jump right to the end, putting up the “for sale” sign before they’re ready. It’s not the buyer’s duty to envision how the home will finally look, so make sure everything is set for visitors. Moreover, don’t leave anything personal around there and keep everything as clean as possible. Don’t leave around tools or other garbage, since the buyers have to see themselves living there.