Courtesy my Verico Canada First newletter, which I will be sending out to interested people this week, comes the following reprinted article.
Having been involved in several reno projects of my own and for friends, family, and clients, I can offer first hand advice on this subject matter that is a little bit more market specific to your area. Give me a call if you want to talk a little bit of real estate.
Flipping houses is a hot topic these days. Here are 10 tips to help you find the perfect flip from HGTV’s The Big Flip renovator’s John Stassen and Randy Mackay.
- Find properties that are diamonds in the rough – homes that are rundown in comparison to those around them – as these often have a low list price.
- Are the surrounding properties well maintained? This can add value and clinch a sale when your house goes back on the market.
- Scrutinize previous renovations. Poor quality workmanship can mean you have paid a premium for finishes that you will have to repair or replace yourself.
- Can you add bathrooms, storage or enlarge a small kitchen to meet the needs of today’s average family? If you can’t, walk away, as these features often make or break a sale.
- Ensure you do a thorough home inspection before purchasing properties – this could save thousands of dollars in the long run.
- Identify your potential buyers (i.e. young professionals or families) and design the house with their needs in mind.
- Find a real estate agent who understands the market. There are thousands of real estate agents; get one who is experienced and understands the business of flipping houses!
- Do your research and find areas that are up and coming. Neighbourhoods that are in the early stages of being gentrified often contain homes that offer large returns on their investment.
- Be realistic with your budget and always leave room for hidden costs. Early budget optimism can mean cost cutting later on, which means sacrificing quality – and profits – in the final sale.
- Keep your eye out for properties with good layouts that can be easily updated with new paint and trim. You may get lucky and find a home that’s a good price and only needs finishing touches, adding tens of thousands of dollars with minimal investment.
(Article by John Stassen and Randy Mackay / www.hgtv.ca)
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In our market, "flipping" is only successfully done by those who are experts. The uninitiated should not consider flipping at this time since there are so many things that can go wrong.