Flipping Your First House? 3 Things You Should Do Before Bidding
Are you thinking about investing in real estate? Although reality television shows love to make house flipping look easy, buying low and selling high can only happen if you know how to find the right property. Here are three things you should do before putting in an offer on a home you plan to flip and why:
1. Invest In A Home Inspection
With the increasing popularity of house flipping, finding properties that need a little TLC can be difficult and competitive. If you manage to find a place that you feel you could make a profit on, you might be faced with a bidding war—which tempts some buyers to avoid recommended home inspections. However, there are some very real benefits to home inspections that shouldn't be ignored.
For starters, your home inspector will look for serious problems with the property like foundation issues, plumbing problems, and electrical concerns. In addition to saving you money, knowing whether or not these problems are present could help you to prevent serious accidents like fires or floods. Home inspectors can also give you a more accurate idea of the kind of work that would be involved in solving these problems so that you can budget and bid accordingly. With home inspections costing an average of $318, a small investment now could save you from a world of heartache later.
2. Calculate Your Costs
After you get your home inspection report, spend some time calculating your projected expenses. If you find out that you need a new roof or have to replace the carpet, talk with a roofing company and a flooring expert to get bids on the work. These kinds of cost calculations can help you to justify lower bids to the sellers so that you don't look like you are submitting a low-ball offer.
3. Research Your Comps
Last but not least, don't forget to research the comparable properties in the area and remember to match condition for condition. For example, if your property has three bedrooms and two bathrooms but will require a complete gut, look at similar properties in the area to see what they have sold for to give you a better idea of how to bid. Also, take into account the location of the home and the condition of the landscaping.
By doing your due diligence and spending the money for a professional home inspection, you can avoid problems and increase your chances of a successful real estate investment. For more information about buying real estate, contact a real estate agency like RE/MAX PLATINUM : Gail Schoeneberg.