Flipping a home is tough work. Aside from the research, the investment, and the construction, you still have to attract the right buyers at the right time! In an ideal world, a flipped home would sell itself and give you time to sit back and relax.
Unfortunately, the real estate market isn't ideal, and you're going to have to take on a couple more tasks to stay ahead of the competition. The question that's on every investor's mind is: just how do you make your flip more appealing in today’s competitive marketplace?
Flip the Right House – the Right Way
This would seem like common sense, but it's actually a mistake that happens frequently. A big part of investing in property is doing extensive research beforehand. What is the neighborhood like and what are the typical home values? Creating a multi-family unit in a neighborhood full of owner-occupied homes may pose a marketing challenge: young renters often want to live close to amenities, not in suburban neighborhoods.
Too Many Improvements Narrow Your Market
Property values are not set in stone, but they are a strong suggestion. After all, there is such a thing as over-improving a property. Yes, there are situations where an indoor pool is not a valuable improvement. Consider your ideal buyers and what they're looking for within their budgets. Marble counter-tops may look great, but they do nothing for the value if other homes in the area don't have similar features.
Make Curb Appeal a Top Priority
Curb appeal is one of the surefire ways to boost a home's marketability, even if it doesn't necessarily increase monetary value. Landscaping, fresh paint, and interesting finishes on the porch or garage are some examples of projects that will attract passersby. Curb appeal goes beyond the curb, though: the inside is just as important as the outside. Staging the home for before a walk through has been shown to increase sales price by an average of 17% or more.
Do These Valuable Renovations First
Invest more heavily in some of the most valuable projects. These renovations are all but guaranteed to increase the price of a home:
- Kitchen remodeling
- Bathroom remodeling
- Energy-efficient windows and appliances
- New siding
- Adding or refinishing a deck
Learn How to Market Your Flip
Finally, the most important thing you can do to boost your flip's appeal is to market it effectively. This means identifying the target buyers, then attracting them with good quality photos and useful information. Your perfect buyers are out there, you just have to get them to notice you.