House Flipping 101: Tips for a Strong Flip Game
House flipping, according to RealtyTrac, is when a home is bought and sold twice within six months, has been seeing a steady increase over the past two years, thanks in part to shows on HGTV and other cable channels. Daren Blomquist, Senior VP of RealtyTrac, also notes more homes are available after foreclosure processes and the fact there is a greater sense of confidence in the real estate market as reasons for the increase in house flipping.
Top Flipped Cities
In the first quarter of 2016, 6.6% of single family homes and condo sales were houses that had been flipped, which is up 20% from the last quarter of 2015 and up 3% from the previous year. The top cities which reached an all-time high in flipped sales include: Baltimore, Buffalo, Huntsville, New Orleans and York/Hanover, PA.
What made buyers in these cities so successful? Many worked with businesses such as Success Path Education, to receive education to start the career in real estate investing and tips to be successful in flipping. Some tips to be successful include:
· Knowing and sticking to the numbers. After all you don’t want to invest in a property and take a loss
· Know the market. Knowing your market can help you decide whether to flip right away or rent it out for a bit
· Know your buyers. Keep your potential buyers in mind when updating the house. If you can’t make certain changes, look to sell to buyers the current layout will attract
· Showcase your work. Let everyone from buyers to appraisers know exactly what you changed or if there are any warranties involved with products you installed
· Be realistic and go back to the first tip. While you want to earn a profit, make sure you don’t overvalue the house, as this could cause it to be on the market longer than you had hoped for