Real estate investing can be rather passive with rental properties but house flipping requires repairs and improvements. Successfully flipping a house is about knowing the market, getting a good deal and working hard to turn that property into a buyer's delight. When you first invest in a home, it can be extremely overwhelming when you start to explore the many upgrades and fixes that it is going to need. Most homes can't be flipped without doing some decent renovations, so prepare yourself to work tirelessly. You probably have some great ideas and are eager to get the home on the market. The checklist below is a pre-closing house flip guide that will help you not miss anything during the remodel.
1. Structural Repairs
Check for cracks in the walls and ceilings. These are structural concerns that can be costly, especially if there is moisture damage or bowing walls, which could indicate an issue with the foundation. If the cracks do not indicate a bigger problem, you can cover them up to avoid the eye sore.
2. Interior/Exterior Paint
Perhaps one of the most basic improvements you can make but it has potential to drastically transform the space. Interior and exterior painting is a crucial step for home flippers. Try to stick with neutral colors that won't take the home buyer by surprise but will subtly improve the look and feel of the home. It is generally best to stay away from white or off-white, as it can make the home seem dull and boring.
Remember to use pops of color along the trim and baseboard. You can paint these a contrasting color to help them standout.
Flooring can be a costly upgrade but if you take advantage of low priced carpet, laminate or vinyl, you can save a great deal of money. Flooring has the ability to transform a space and make it seem entirely new. In bedrooms and hallways, most homeowners prefer a comforting carpet. However, in kitchens, bathrooms and living rooms you can use laminate or vinyl to save money and add to the appeal of the home. Dark woods are very popular among laminate.
4. Landscaping mulch, plants and trees
Improving the exterior can provide thousands of dollars more when flipping properties. Home buyers want to see a home that is already landscaped and won't need many changes to look the way they want it. You can search Craigslist for affordable mulch, plants and trees. Use these to landscape the home and improve its curb appeal.
If the home has outdated appliances, you can't expect top dollar on your flip. Buyers today expect modern standards and rarely settle for appliances that don't make them excited. Stainless steel is typically your best option, with all black appliances coming in at a close second.
6. Kitchen/Bathroom Cabinets
Modern cabinets can accomplish a lot for any kitchen or bathroom. Dark colors are more popular now than ever and home buyers are often looking for cabinets that "pop" and add to the appeal of the room. If the cabinets are an old wood color, try sanding them down and applying a fresh coat of paint.
7. Kitchen/Bathroom Counter-tops
Counter-tops can be even more important than cabinets. If you can't afford a granite or high quality counter-top, there are plenty of "look-alike" options on the market that would make for a sufficient substitute. Make sure your counter-top and cabinets match well or are contrasting colors.
8. Doors and Door Hardware
Hallway doors can make a major difference in selling price. If you have elegant doors with quality door hardware, this can make a difference to buyers.
9. Faucets, Mirrors, Toilets and Tubs
Bathrooms are the pride and joy of many homeowners. Make sure all of the faucets are working and add to the appeal of the room. Similarly, make sure the mirrors don't have any cracks or visible signs of wear. Toilets and tubs are very important as well. If the tub is an old color, you can pick up tub paint at your local hardware store. It's stinky stuff but highly effective.
Before closing on the purchase of a house, make sure you have done everything you can to take away the buyer's concerns. This means that they should see no room for improvement and their needs have been met. The inspector will be checking the home for vulnerabilities, so repairing things that could potentially not pass the inspection is your top priority. If you have any questions on obtaining a loan for flipping properties, please contact us.
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