Aug 09 2007
Flipping Houses in a Buyers’ Market
In today’s market, the question in many investors’ minds is “How do you still make money flipping houses in a buyers’ market?”Believe it or not, there are a few upsides to a buyers’ market:
- Less competition from home buyers
- Extremely motivated home sellers
- Cooperative real estate agents
- Eager loan officers and closing attorneys
There are a few points to keep in mind when attempting to flip houses in a buyers’ market. First, be sure to become an expert in your targeted location. This could mean focusing on one geographic area or neighborhood. Take note of how many houses are actively for sale, how many have recently sold and how many days were these homes on the market. You will then want to analyze how much the house sold for and what kinds of concessions did the sellers make. You will find that many sellers are very eager for an offer on their home and are willing to do whatever it takes to sell their home quickly.
You should also follow your local real estate market. Preview the homes for sale and visit Open Houses. When it comes to buying and selling real estate, “Knowledge is power.” You will find yourself quickly sorting through which homes are a ‘steal’ and which homes are over-priced and not worth your investment dollars.
Secondly, you should try to save as much money as possible on building materials, paint and appliances. Retail outlets and discount stores are a great way to cut costs.
Next, be sure to use decorating details and paint colors that you know will attract your targeted home buyer. Not all buyers want everything spray painted white and beige.
If the home is going to be vacant while on the market, you may want to consider staging. You do not need to completely furnish the home, but a few staged decorations will help the potential buyer to visualize him or herself living in the home.
Finally, Sell Your Home Quickly! List your home with a Realtor who is familiar with the local real estate market. Don’t waste precious time. Price your home competitively and keep the buyers motivated with incentives that make your home stand out from the rest. Before you know it, you’ll be able to flip houses and make money in any market!
