Property flipping is on the rise. With a few smart upgrades and investments, you can turn a lonely old house into a hot item on the real estate market. Like all good things, however, that transformation doesn’t happen by magic. You’ll need to know what you’re doing when you get into a new flipping project. Being prepared entails everything from staying on top of market trends to knowing what interior paint color will appeal to the widest audience of buyers. To make your next project a little easier, here are five ways you can maximize value when it comes to flipping property.
1. Clean Up the Kitchen
It’s no exaggeration to say that many people decide whether or not to buy a home based on its kitchen. This space is about more than just food preparation. It is the heart of the home, where families gather throughout to share meals, complete homework, and simply hang out.
Make sure your property’s kitchen is the best it can be by investing in attractive appliances like an induction stovetop (with matching induction cookware), double ovens, and upscale refrigerators. Better appliances can seriously increase your home’s value in the long run.
2. Keep It Neutral
Although you’re likely flipping this property with your own profits in mind, you’re ultimately not doing it Every renovation, change, and update is for the buyer. So, it’s essential that you make your property as neutral as possible. Interior design might offer ample opportunities to express yourself, but when it comes to flipping, you need to put your own tastes on the backburner while you prioritize design aspects that will appeal to your audience.
3. Know Your Budget
This might seem intuitive, but it’s essential that you keep a firm budget from beginning to end. It’s essential that you follow what’s known as the 70% Rule when you’re flipping a property: your initial purchase and renovation expenses should amount to no more than 70% of the property’s value after its repairs. That means if you want to sell a property for $500,000, you shouldn’t spend a cent over $350,000. Applying this rule is essential to ensuring that you make a decent profit on your flip.
4. Maximize Your First Impressions
Curb appeal is the golden rule of selling real estate. If your property doesn’t catch a buyer’s eye as they’re strolling down the street, then it’s likely not going to stir up enough interest to convert into a sale.
Even if the interior is beautiful, it can be tough (if not impossible) to make up for a lack of curb appeal. Make an unforgettable first impression by updating the exterior with a fresh coat of paint, repairing any damage, and investing in attractive landscaping. After all, even a freshly-painted front door can lead to huge profits.
5. Take Your Time
If you’re like a lot of enthusiastic flippers, you might be chomping at the bit to get your project done and on the market where it can make you money. However, in many cases, real estate rewards long-term planning. Rather than putting your property up for sale immediately, it might benefit you greatly to take your time and wait for market conditions to change. Real estate is famous for its ability to appreciate in value – if you wait for your property to appreciate, you could reap significantly greater profits than you would have otherwise. Flipping real estate properties can be a personally and financially rewarding experience. No matter how large or small your project is, maximizing your value is key to getting the most out of every flip.