Home flippers make the most money by taking advantage of natural home buying and selling peaks and valleys. Ideally, buy a home to flip during the fall and winter when homes prices are lower. Then list your home in the spring and summer to capture the best profits. Selling your flipped home before school starts improves the odds of a quick and profitable sale because most families want to get settled into a new school district. Starter home inventories often dip in the summer, driving up prices. Some of the easiest homes to flip for a profit are entry-level homes. Experts point out that the median cost of a starter home in the U.S. is about $171, 624. With starter home inventory down as much as 20 percent in the summer, it's easier to beat out the competition.
Setting up a smart timeline
If you already own a home you want to flip, plan to make cosmetic improvements and structural repairs during the winter and early spring. If you have to house hunt for a home to flip, realize the home inventory often peaks in the autumn. By winter, most home sellers often agree to a steep discount. When deciding on a home-flipping timeline, consult with all of the subcontractors, general contractors, carpenters, electricians and stagers about scheduling and time frames. Selling a flipped home in less time means paying for fewer carrying costs.
Appealing to families with children
When selling a home before school starts, consider the average potential buyer. In most cases, it's young people with children who want to own a home in a good neighborhood. Pick a home to flip in a solid school district with low crime. Some of the must-haves for most small families include a fenced yard away from major streets with a lot of traffic. Also, aim for the typical starter house that includes at least three bedrooms and two bathrooms. While a separate laundry room is not a necessity, its a nice touch to add if you have the time and funds to do so. If you decide not to include a laundry room, make sure you include a washer and dryer in the garage or in a closet in the kitchen area. For flooring, save money with carpet in the bedrooms and a nice laminate flooring in the main living areas.
Standing out against the competition
Although most home flippers haven't experienced a lot of competition in recent years, experts expect an uptick in inventory in 2018.Some of the key housing indicators include 3.2 percent home appreciation and 2.5 percent increase in existing home sales. It's more important than ever for home flippers to stage homes to look like model new homes with a 3 percent growth in housing starts and a 7 percent increase in new home sales. Since the projected home ownership rate for 2018 is 63.9 percent, home flippers will likely have plenty of potential buyers viewing their completed fix-and-flip property. The key is to make it seem like a brand new house without any evidence of its prior condition.
More millennials are driving the housing market now. Home flippers who get their houses ready to sell before school starts feed the millennial appetite for budget-friendly housing. Moreover, some millennials now have the money to buy step-up houses for their growing families. Consider investing in homes in the moderate range or somewhere in between entry-level and luxury market. As home buyers have more discretionary income, they will favor home flips with upgrades such as granite countertops, porcelain tile, modern pendant lights and kitchen islands. Think about families when designing a home. Most families prefer larger kitchens, open space and split floor plans.
At Center Street Lending, we help real estate investors with all their financial needs to find success in the fix/flip industry. We are a reputable private money lender. For more tips on selling your flipped home before school starts, please contact us today.