Flipping a house can be a tantalizing prospect, but buyers and sellers, beware! It’s not as easy as it may look to the casual watcher of house-flipping shows.
Flipping a house can be a ton of work, a financial risk riddled with hidden and unexpected costs, and can end up being frustrating and time-consuming. UpNest consulted with real estate investors, realtors, and home improvement specialists to compile a list of 10 things a homebuyer should know before trying to flip a home.
Doing it well means researching the market, combing through neighborhoods, finding the right house, estimating repairs and rehab needs, making a budget, securing the funding, listening to the right experts, overseeing the repairs and renovation, handling inspections, marketing, meeting with prospective buyers, making a sale, and living with risk and worry along the way.
Making poor or ill-informed decisions can mean paying too much for repairs and materials, missing out on the best seasons to make a sale, carrying a property too long so that bills from lenders pile up, or getting stuck with a property that just won’t sell. On the flip side, flipping houses can be profitable, interesting, enlightening, creative, and satisfying.
Continue reading for 10 things you should consider before committing to flipping a house.
