House flipping is both a science and an art. There are mathematic principles that should be abided by, but there’s also a fair amount of gut instinct and taste involved, both of which are nearly impossible to teach. You’ve heard us harp on the importance of doing your research and making sure the numbers line up before investing in any property, but aside from the math and the research, what are some things you can do to improve your ROI? How can you make your flips the most desirable homes on the market?
Here are our top house flipping tips for adding an extra punch to your profits.
- Get to know your market and design with your buyer in mind.
This may sound like a no-brainer, but you’d be amazed how often we see flips that don’t seem to have any regard for the intended buyer.
Is the house you’re flipping going to be best suited to a young family or a pair of retirees? Would it make the perfect pad for a young professional, or is it an upgrade house for people mid-way through their careers? Each of these buying groups is going to have different needs. The young family might love to have an office that could turn into a bedroom when their next child comes along. A bachelor or bachelorette might be more interested in a great entertaining space than spare bedrooms.
Likewise, the renovations you make should reflect the neighborhood. If you’re flipping a home set amongst stucco and tile roofs, you probably don’t want to go with a Victorian look.
- Educate your buyer.
When they do initial searches, buyers rely heavily on pictures and the descriptions provided by the seller. Make sure you use a professional photographer to show off your work, then put care and detail in your home description. Make sure to point out all the positive changes you made, especially changes that won’t be visible in the pictures. If you took out the 1950s plumbing and replaced all the fixtures, write that down. If you put in new windows, let everyone who walks in know. You should also put together a list of local amenities and highlight the scores of the local schools, if they’re worth bragging about.
- Don’t overprice.
This is a big one. We often see flippers trying to make back time they lost or unexpected costs by cushioning the asking price. Unless the market is extremely hot, this will likely scare away potential buyers and cause your house to stay on the market longer than necessary.
Starting with a reasonable asking price brings much more attention, especially since buyers can compare your asking price to the Zillow and Redfin estimates. If the price seems good, people will come in, fall in love, and be willing to pay over asking if need be to secure the house.
Of course, you can also maximize your profits by securing the best house flipping loans. At ZINC Financial, we fund loans in as little as seven to ten business days. Our clients come back to us for flip after flip. Give us a call today at 559.326.2509 to learn why.