Home » Renovation » 11 Steps To Flip A New House

0

It sounds so easy. You get a house, do some repairs, renovations, and beautification and then sell it for a higher price that covers your costs and earns you some profit. Well, if done properly, it truly can be as easy as it sounds. You do not necessarily need to have some sort of specialized education to be successful as flipping houses. All you need is some know how, dedication, a willingness to learn, and most important, a lot of patience. If you are planning to flip a new house, these are 11 of the most crucial steps you will need to go through.

Learn About Home Purchase

If you have never bought a house or a condo, then you will have to take time to learn all about what it entails to purchase property. Some necessary home buying steps you will need to be closely familiar with include getting mortgage, placing offers for homes, removing conditions, and taking possession of the home.

Know the Real Estate Conditions

The real estate market is very much like financial markets such as the stock exchange. There will be Bull markets and Bear markets. That simply means that there will be periods when there are more people seeking houses to purchase and there will be other periods when there are too many people selling their homes with very few buyers. The national real estate situation is usually a good indication of how the future looks, but you should rely more on the specific market condition of your particular area. For instance, your state may be facing a prolonged lack of demand for housing but then you find that there is a rise in demand for 3-bedroomed homes in particular neighborhoods. Having such information is a surefire way for finding the perfect new home to flip.

Find a New House

There are many reasons why someone would want to sell a new home. Maybe they are facing financial difficulties and want to purchase a smaller home or maybe the builder made the home for sale rather than to live in it, such as a “spec house”. The owners may also be undergoing divorce, facing bankruptcy, or facing other forms of distress. Finding a house is key to your success at flipping homes. You have to find a new house ideally located and with low improvement expenses that you can sell fast and at a high price. A good place to start is by checking out houses that are still under construction or those that construction has stalled. New homes are especially attractive for flipping since they have not yet been lived in, require minimal repairs, have more features and amenities, and probably already have a continuous stream of interested buyers.

Make an Offer

Immediately you find a house that is perfect for flipping, move fast and make an immediate offer. However, do not commit yourself without leaving multiple options of getting out of the contract. This is because you might find a better home to flip or you might discover that the maintenance expenses are much more than you are willing to take on. A great way to protect yourself is to make the offer “subject to financing” so that if you do not get the financing you need then you can opt out.

Get Financing and Take Possession

Once you have made the offer you need to clear all conditions such as inspections and financing. There are many lenders with different terms and rates so take your time to shop for the best. Actually, you should have already picked out your preferred lender immediately you decided to flip homes so at this step you will be approaching the loan officer with details of the house you want to purchase. Once that is done, then you need to take possession on the contract’s date.

Prepare For Showing

After taking possession, you need to instantly embark on improving and beautifying the property to attract buyers. For instance, an interior renovation Long Island company may help you renovate the whole house or particular rooms such as the kitchen and bathrooms. Generally, choosing neutral colors works best as it gives the buyer a plain canvas on which they can put in their own ideas. Do not forget the exterior either. Work on the gardens, walkways, swimming pool, and whatever else is within the compound. Get rid of all personal items that may belong to anyone who has ever lived there and put away all excess or waste material from the construction, renovation, and decoration.

List the House

To attract customers quickly, you must list the house with a real estate Multiple Listing Service through a realtor. This will make other realtors aware that the home is up for sale and they will begin showing it to their clients. Of course you will have to pay a commission to the realtor who makes the sale so factor that into your sale price. This commission is a small price to pay if you will have many realtors trying to sell your house rather than just you looking for buyers.

Start Showing the House

If you want to reach many potential buyers and realtors at the same time, it may be best to conduct an open house. Even if you do not get an instant buyer during the event, you will have gotten the word out and more interested buyers will start coming days and even weeks or months later. Since flipping houses is a tactic for making quick profits, this is the best way to generate interest. Make your contacts available to potential buyers and realtors and make it easy for interested buyers to make appointments for private viewings or negotiations at their convenience.

Carefully Consider Offers

If you receive an offer, do not immediately accept it. Instead, give it an hour of careful thought and consideration. This will enable you to structure the payment to the best of your advantage and will give you time to compare with other offers.

Give Reasonable Condition Dates

Similar to when you were purchasing the house, the buyer of your flipped home will want to remove all conditions attached to the real estate purchase contract. These conditions may include having the property inspected or getting financing. You do not want to give the buyer too much time otherwise you might miss out on other opportunities. On the other hand, you do not want to unduly pressure the buyer by giving too little time.

Look For a New House to Flip

Once the buyer takes possession, you have made your profits. Start looking for a new home to flip. You are now better acquainted with the business and you know all the best builders and interior renovation Long Island. Good luck in your long term real estate endeavors.

Flipping a new home can be very profitable and fulfilling. If you have an eye for sorting out the diamond from the rough, then use the above steps to launch a profitable business flipping homes.

Featured images:
  • License: Image author owned
  • License: Image author owned

Boyle is a kitchen designer and a blog writer with over 2 years experience. She favors mixing contemporary designs with functional Asian designs such as those from Japan, China, and Indonesia.

Leave a Reply