Trading Up: Tips for Successful House Flipping

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House flipping, the act of buying and selling properties for profit, is on the rise. In 2019, it was found that properties flipped represented 6.2% of all home sales across the country. With the right investments, there are huge amounts of wealth to be generated in real estate but if you want to avoid any pitfalls, you’ll need to carry out plenty of research beforehand - here are some tips from Clarity House Cleaning to get you started.

Know Your Locale

When it comes to real estate, location is still king. If you want to capitalize on up-and-coming neighborhoods, you’ll need to first learn to spot them. A neighborhood analysis is a type of market analysis that encompasses property values, population growth, employment rates, income levels, transport links, educational attainment and institutes, and, of course, crime rates. All of these facets and more will feed into the appreciation of a home and help you to predict market shifts.

Respect Your Budget

Even if you’ve found a great neighborhood with prime real estate, you’re still going to need to work within your own financial constraints. Take the time to consult with your accountant to better understand your personal limitations. Remember that a home buying budget doesn’t just end with mortgage payments; it should factor in down payments, repair and maintenance expenses, realtor fees, property taxes, and more. Planning for these additional costs can help ensure a smoother home buying experience.

Observe ARV (After-Repair Value)

Many real estate investors cite the 70% rule, which suggests that investors should only pay 70% of the after-repair value — this is how much the property is worth after it has been fully renovated. In other words, you should never seek to buy properties that are being sold at market value. Instead, look for real estate that will explode in worth after repairs, renovations or upgrades have been made.

Make Updates and Upgrades

The key to a successful house flip is spending less on improvements than those improvements add to the home’s value. The kitchen is a great place to start work because work there tends to be worthwhile. Upgrade old appliances and consider changes to the cabinets. These upgrades will help your home command a higher price.

Managing Forms and Documents

Using a PDF signing tool online can streamline the management of the numerous forms and documents involved in flipping a home. These tools allow you to complete your forms quickly and accurately, ensuring that no detail is overlooked. With the convenience of digital signatures, you can finalize contracts and agreements efficiently from anywhere. This not only saves time but also reduces the risk of errors, helping you stay organized and focused on your renovation projects.

Stage For the Sell

Staging the home for sale is a critical step in attracting potential buyers and showcasing the property's best features. By arranging furniture and decor to highlight the home's strengths, you create an inviting atmosphere that allows buyers to envision themselves living there. Thoughtful staging can also make spaces appear larger and more functional, increasing the property's appeal. 

Use a Home Inspector

Real estate is not always a transparent industry and you’re going to need the help of an experienced and qualified home inspector before you can be sure that a home is right for purchase. Ideally, these experts will be able to test for mold and radon and gauge water quality, while some will use infrared to reveal hidden issues like pest infestations, foundation cracks, missing insulation, and more.

Buying and selling real estate is a tricky business but one that can yield tremendous profit. Just make sure that you seek the right advice, budget carefully to find an affordable property, handle business-related tasks like managing documents digitally, and know the property inside out before you invest.

For commercial and residential cleaning services in San Diego, contact Clarity House Cleaning today!