Those house-flipping shows make it look so easy, don’t they? Don’t be fooled: the people you see on these shows are professionals. However, they can certainly teach you a thing or two when it comes to your own real estate ventures. Here are some of their real estate secrets when it comes to home buying and selling.
Location, Location, Location
Wasn’t that the old rule of thumb when it comes to real estate? Fear not, it still is! The homes that sell for the most money and in the shortest amount of time are in the areas where people want to live. If a home’s location leaves you hesitant in buying it – odds are, other buyers will hesitate for the same reason. In cases like this you might be better off passing on the property.
Design for the Masses
Forgo spending lots of money to personalize your home’s design. You don’t want to overinvest in aesthetic changes to your home because they not only just marginally increase its value, at most, but in some instances, they may actually lower it. Instead, invest in upgrades that future buyers will actually consider as improvements to the home overall – like modernizing utility systems with eco-friendly ones, or removing outdated carpet and refinishing the wood floors hidden beneath. You want to think about resale value of your home, even if at this point you have no intention of selling anytime soon.
Look for Appreciation Potential
A number of homes available for sale nowadays are underpriced, due to the trends in the real estate market over the last 10 years. House flippers never buy homes at market value, because they want immediate equity from their purchases. This allows them to make quick repairs and improvements so they can quickly resell their homes and profit from the transactions. While you’re not looking to turn your next home over for profit immediately, you should narrow your search as much as you can to homes that are listed below market value. With just a few years’ worth of modest repairs and improvements, you stand to make a healthy profit on its resell.
Don’t Skimp on Inspections
House flippers are typically seasoned contractors themselves; even so, they still make sure all of their prospective homes undergo thorough home inspections – and they are usually physically present at each one so they don’t miss a beat. As a home buyer, it is crucial you make sure any home you plan on buying undergoes a thorough home inspection, or inspections. It is also highly recommended you are present when it does. Home inspections are helpful in that they reveal any problems or issues that may be lurking beneath a home’s surface. They can give you a good idea of how much it will cost you to adequately fix any required repairs. An inspection can not only save you from being liable for major and expensive issues that could arise once you have purchased the home, but it can also give you some bargaining power to go back and negotiate a lower price for the home.