When you are looking to get into house flipping a great place to start is with some research. Educating yourself on your specific market is easy to do and doesn’t require an investment other than your time. There are plenty of websites you can check out at no cost to see what the pricing trends are in your area and what the inventory may be. While there is a good amount of information available online there are some things that you are just not able to see online. For this reason, a good old-fashioned open house is an incredibly valuable tool.
Here are just a few of the benefits to stopping by some open houses this weekend:
As you are starting to look at your market you are going to need to find an agent to work with. Many traditional agents may not be a good fit to work with long term. No matter where you start, finding an agent at an open house is a good fit. If nothing else, you have the opportunity to introduce yourself and share the criteria you are looking for when it comes to a house. If the agent offers to provide any market information or comparable sales data take them up on their offer. That way you can how their follow up is which may be a determining factor as you are looking for a consistent and reliable agent to work with.
See What the Pricing is Like
In different neighborhoods you will find your dollar may go further. Look in different areas and at different prices to see what types of value are available. This information can also help you better understand who you will be marketing to when you do purchase that first flip. Is the price point for your resale a first time home buyer? A move up buyer or someone who is downsizing? Each of these buyers may be looking for slightly different things so understanding who your target market is will be helpful. It will also give you insight as you decide on the layout changes or finishes you may select.
Homes for sale may have been recently refreshed or updated. You may even get lucky and find a house that has recently been flipped. If that is the case pay very close attention to all of the details and the pricing with that home. Know what of the features contributes to the pricing and how those upgrades are being marketed to buyers. Also, look at the design selections like paint colors, tile, cabinetry and carpet. This is especially important if people are commenting or responding positively to them.
You may think you only want to purchase a flip in a certain area but maybe there are up and coming areas you don’t even know about. Looking around and scoping out new locations can give you a competitive advantage. Especially if you are able to find out the types of development and growth that are planned for an area. You will also be able to ask the agent hosting the open house if they are familiar with anything new happening in the neighborhood.
Real estate can be competitive and you do not want the first house you look at to be the first offer you write. Putting in the effort to understand your market will better position you when you are submitting that offer.
So you’ve purchased a house to flip. Now what?
Want to buy a property and renovate it?
I have a freebie checklist that will help you — 8 Things I look for When Purchasing a Home. Just click here to download it.
Love before and afters?
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