Quick Tips on Flipping - Part OneMonday May 23rd 2011
Some examples, blemishes on Title, bad foundation, LP siding fails, water damage, construction taking longer than planned, selling your finished flip taking longer than planned, etc... More than likely something is bound to come up with each house that will take you over your originally planned budget, so leave some room for error.
If you want a buyer to pay retail on a house then give them a finished product…Don’t just update the kitchen but leave wood paneling in the basement, or skip painting the millwork to cut costs, or paint the exterior without vamping up the landscaping. A buyer is not going to pay top dollar if they walk through a house and still see’s work to be done. Other ways to present a “retail priced” house is through staging, the less the buyer has to envision when walking through the better.
Do not go off your personal tastes…The goal is to attract BUYERS. Find out who your target buyer is going to be. Are you near a large business that is going to attract the single worker? in a good school district that young families will flock to? In a community where senior exemptions are allowed? Extended families? Etc.. Also, what is your target buyers price point? That can help determine your finishes and wither to go higher end or lower. Always stick to neutral colors, especially when it comes to paint and flooring.