So you’ve bought a house and think you are going to fix it up and make huge profits. There are numerous television programs that make it look so easy but they never give you the behind the scene reality. What you do not see on those programs are the crews of people working off camera to complete the project in the desired timeframe. You probably know something about construction and renovations but you don’t have the faintest idea where to start. What order should the tasks be completed to finish quickly and make a profit? Before I go any further, I want to clarify something. The act of buying a property at one price and immediately inflating the price to sell it without making any improvements is illegal and known as ‘flipping’ property. When I use the term flipping I am not suggesting that you get involved with this activity but rather to buy a property, invest money and time to make improvements to the house and then sell it for a profit.
The first and most important thing to know is that you want to make the house look and feel like a million dollars without spending that much. Just because you decided to put in gold plated fixtures does not mean that you will receive the same return on your investment. The biggest mistake you can make as a real estate investor is to break your budget and hope that the market will compensate you in the final sale price. You should have your Realtor provide you with comparable properties with the type of improvements that you intend to add and then work toward creating the same. The market will only bear what the buyer is willing to pay for the property, so do not over improve the property hoping that ‘the right buyer’ will come along.
Secondly and almost as important is the amount of time you spend improving the property. The most successful outcomes happen in a very short time. If you are intending to make this your weekend project with the odd couple of hours after your full time job in the evening, your profits will dwindle considerably. It is best to prepare your schedule over the course of six weeks or less to maximize the return on your investment. With this schedule in mind, tentatively book your first open house with the real estate broker or sales representative to motivate you to finish on time.
Finally I want to stress to you that making over a house is not about your personal taste but rather what the majority of buyers are looking for. If you have ever entered a new construction model home, you would get a good indication of what the latest trends are in decorating. Generally speaking the colour palette should be generic and neutral and flow through the home. When you are decorating and designing your improvement project, your main goal should be focused on mass appeal. It is your job to create a property with the fewest possible negatives for potential buyers. You want them to focus on room sizes and how their furniture will fit rather than complaining about having to repaint a particular room or changing the bathroom tile.
Flipping a property is not as easy as some would have you believe. It requires extensive planning, time management and the knowledge of a qualified Realtor. However given the right information, it is very possible to earn high profits from the endeavour.