Can You Flip a House?

by Sherry Holetzky | More from this Blogger

29 Jul 2007 12:56 PM

Do you have what it takes to flip a house? I've always wanted to do it, and I think I can pull it off. One of these days I intend to do just that, but the circumstances haven't been right so far. I found a perfect house at one time, or I should say the property itself was perfect except for being in the wrong location.

Location is important and so is checking out comparable houses in the area to see what prices they're going for. It also helps to make sure the local market isn't flooded with similar houses, because that often leads people to spend too much on flips trying to make their properties stand out above the rest.

It's best to take your time, find a great place in a great location, have it inspected, and lay out your goals in advance. Have a plan. Figure out a workable budget and always allow more than what you think you'll need. There always seems to be an unforeseen expense (or several). Pad the budget a little so you'll have emergency funds. If you don't spend all the money you've set aside for the project, that's even better.

Should you hire a real estate agent to sell the property? Some people hope to bypass expensive commissions, but you have to know what you're doing if you intend to go "for sale by owner." Real estate agencies have built in advertising and exposure as well as contacts. After you've been flipping houses for a while and get some experience, you may then be able to advertise and show your properties on your own.

A last word of advice: stage the home. It doesn't have to be perfect or even fully furnished, but some "lived in" touches will make it feel more like home to prospective buyers. Soften things up with some window treatments and add at least a few furnishings and accessories.

Flipping houses can be quite lucrative and a lot of fun, but it is also a lot of hard work and there is risk involved. Do your homework before jumping in.

Learn more about Sherry Holetzky

Sherry Holetzky is a work at home mom and freelance writer. Married to her best friend, Sherry and her husband are raising their family in a quiet rural setting in the beautiful Ozark Mountains.

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