Though it may be tempting to look to the media for insight real estate is incredibly localized. General statements about one market in the country may not be true for others. Here are a few benchmarks to look at in potential areas you may consider for flipping. While not all of these have to be present the more there are the stronger the indication that the area may be a great choice for flipping.
1 – Low inventory
When there are few homes for sale it is an indicator that there is a strong demand for that location. When looking at areas for flipping consider not only the listings that are active but those that are pending as well. These parameters will show you how quickly the homes are being purchased as well.
2 – Multiple offers
Another area to look at is how many of the homes that are pending or have closed have exceeded listing price. In many areas there may be comments in the listing asking for offers to be received by a deadline. You or your agent can also reach out to listing agents to verify information and pricing, especially if the property is pending. And know that multiple offers can exist in desirable areas even when the market is not considered a sellers market.
3 – Older homes
This is one of my favorite criteria for looking at areas for potential flips. Neighborhoods with older homes and perhaps established residents often have houses that are ready for some updates. Especially when there may have been some growth or development within the community that is attracting potential buyers.
4 – School options
While neighborhood schools are a key attraction for buyers in the past couple of years flexibility is also something on the radar for buyers. Districts that offer options for learning like immersion or STEM, open enrollment into nearby districts that are sought after and private options within easy proximity are what can distinguish communities. Even for those who may not have the need for education options now these choices may act as a future selling point when they are ready to sell.
5 – Growth and business
Areas that are experiencing an influx of new businesses and jobs is an attractive aspect when choosing a market for flipping. There are some areas that have very specific characteristics that make it desirable for people. Consider large employers who may relocate their employees. Proximity and ease of commuting to that business may be a selling point for some neighborhoods. Connecting with a realtor who is familiar with your market should help to identify these pockets where interest may be high from prospective buyers.
While there is no surefire formula, knowing these details when choosing an area can help you in making the best decision when it comes to your flip projects.
Ready to get started in flipping (or refine your existing flip business)?
Buy, Renovate and Sell successfully with my Find Your Flip program. From the comfort of your home, tour three properties with me and discover what I’m looking for when deciding on a flip project. A great option that has helped people kick off their businesses successfully with proven tips and a wealth of information.