6 Costly Mistakes First Time House Flippers Make
Mistakes First Time House Flippers Make • When you’re flipping a house, time is money. And you don’t have time to make a lot of rookie mistakes. • No house flipper is born wise. • So we talked to several pros who outlined mistakes newbie flippers often make. Avoid these pitfalls to ensure your profits come out on top.
Mistake No. 1: Not Getting A Home Inspection • This one’s a biggie. Even if you plan on making major changes to the house, you still need an inspection. Of course, if you’re going to tear down the whole thing, there’s no need for one. • Inspections can turn up all kinds of problems. Some issues, like cabinet doors that don’t close properly, you won’t care about if you’re planning to rip and replace the kitchen anyway. Others, such as a cracked foundation, can cost you dearly.
Mistake No. 2: Overestimating Your Renovation Skills • Every dollar saved on labor is a dollar you earn when you flip a house. But all too often flippers think they’re better plumbers, drywall hangers, and carpenters than they really are. • Make sure to ask for an estimate in writing. That way you’ll know what you’ll have to spend to make the house attractive to buyers.
Mistake No. 3: Underestimating Total Costs • Inexperienced flippers often add the purchase price to renovation costs and figure the sum is their break-even point. • “Be prepared to pay over your expected fees when coming to the closing table,” Shayanfekr says. “Better safe than sorry.”
Mistake No. 4: Being A Jerk Even if you’re determined to do this on your own—you’re a whiz at mitering crown molding, after all—successful flipping requires some level of interaction with others. You’ll need to build a trusted team of craftsmen, suppliers, lenders, and real estate professionals that you can call on time after time.
Mistake No. 5: Jumping The Gun • Some flippers put a “For Sale” sign on the property before completing renovations, hoping a buyer will be able to envision how gorgeous the house ultimately will be. • Don’t list the project until it’s move-in ready. It will save time in the long run, because potential buyers won’t nag you about missing finishes you already plan to include.
Mistake No. 6: Designing a flip like you’re going to live there • Flipper rule of thumb: Never fall in love with a property. • Unlike your own home—where you’ll raise a family, build memories, and make modifications that suit your needs—flips are short-term projects that must appeal to the widest possible market. • “Don’t get attached to the house, because you’re not going to live there,” Cederquist says. “Keep it generic, what’s popular. Then stick to a design and budget.”
For More Information Sellect Realty LLC. Marietta, Georgia Source: www.sellectrealty.com