4 Tips for Flipping Houses in the New Year
Thanks to shows like Flip or Flop, Flip This House and Flipping Vegas, people have become obsessed with the trend of buying and “flipping” houses for a profit. While the shows may make it look easy, the job comes along with hard work, industry knowledge and just a little luck. If you’re trying your hand at renovating houses this year, here are a few things you need to know.
Know Your “ARV”
ARV stands for “after repair value.” No matter how much money you put into a house, there will always be a cap on the amount you get back for it based on the economy, neighborhood, and school system. This means you have to live by the 70% rule – you buy the house for no more than 70% of it’s peak selling price.
Know Your Buyer
Look at what kind of area you are buying a house in and ask yourself, “Who would want to live here.” Are you flipping a house next to an elementary school? Odds are you’re going to be selling to a family, so skip the wet bar in the basement.
Show off Your Work
You worked hard to make this house beautiful, so make sure the buyers, appraisers, and real estate agents all know that everything is brand new. Make a list of every beam, window and floor tile you replaced and give it to them. Now you can rest assured knowing the house will be listed appropriately.
Love Your Work, Then Let it Go (At a Fair Price)
It seems like every one of the shows above always ends with the couple saying, “This has to be one of my favorite renovations ever.” You have put time, money and energy into creating a beautiful home, and now that you’re done it can get a little hard to part – especially if you think you should be getting more money for it. Remember that you’re not always going to get exactly what you want for it, but as long as you’re receiving reasonable offers, know when it’s time to let it go.
If you need help with a renovation, or are just trying to keep your own house together this winter, Leslie Heating and Cooling is a family-owned and operated business based in Woodridge, Illinois and are here for all of your HVAC needs. Learn more by giving us a call at (630) 576-9235 .