You’ve probably heard someone not-so-experienced in real estate with a house for sale who is expecting a premium selling price as they brag how buyers will love the surround-sound system, or the customized cabinetry, or the designer wallpaper and interior paint – only to find out later that the house sold for about average for the neighborhood. What’s up with that?   What’s up is that the vast majority of home buyers aren’t shopping for extra features over and above what’s expected in their price range, and they certainly aren’t interested in paying for them.   Most home buyers select Read more…

Every experienced flipper has a story (stories) they will tell with a laugh or a scream about The Big Problem they never, ever wanted to be involved with – but they were, and up to their eyeballs. Water. Mold. Structural problems. Disintegrating mortar. Critters.Several big problems all at once. Been there, done that, own several t-shirts … I survived and am still flipping.   You need to know that there is a solution for every problem.You are not the first, others have suffered this journey before you and answers have been found. This is why you have a generous cost-overrun Read more…

Found a super-duper purchase price on a nice-looking property that backs up to a busy road? Even after you work some flipper magic,it may be like climbing Mt. Everest to persuade a home buyer to take it, no matter how gorgeous it is or how much you discount the listing price. The vast majority of home buyers just don’t want properties backing up to busy roads or located on busy corners, regardless of the positives.   Such properties will almost always face a significant price hitto entice a buyer to make an offer.Not only are most buyers reluctant to live Read more…

You may be considering the biggest house in the neighborhood as a flip prospect; or, you may be considering building an addition to enlarge a flip project house.Be warned that you don’t want to be marketing the biggest house in the neighborhood!Why is that?   Imagine the market of all the buyers in this neighborhood as a bell curve. The biggest section of buyers is found around the middle of the bell– by definition, the average sales price.That is the sweet spot, the price range with the most buyers so you can sell your flip project more quickly.   What’s Read more…

Knowing what property characteristics are common to the average sales prices in your flip project neighborhood is essential, because that’s your target market. As I’ve explained in other posts, the average price range is where the most buyers are to be found; meaning that you want to be marketing a house of average size and average features, avoiding over-investment that won’t add to the closing price in this market.   The key to house selling is to help your buyer envision a lifestyle they like at a good value for their money.What are the things that matter most to buyers Read more…

Should you build on a rambling addition, or pop the top of your flip house, to bump it up significantly in price range? In this post I delve deeper into the principals behind successful flips.Ask the question: “What is the highest and best use of this property, in this environment, for the near future?”   Any improvement of significant cost and scope should be done IFand ONLY if it put this property squarely in the MIDDLE of the packin size and price range, with the largest volume of current sales.The largest market segment obviously has the most home buyers – Read more…

So, what’s your target house size and sales price for your flip project?This is the destination you should formulate from your first review of the property, even before you commit to the project. What to buy, what to avoid – this is how it works – and how it doesn’t!   How do you determine the direction for your project size and eventual asking / closing price?   In a nutshell – focus on the average local market price and size of a finished move-in-ready house, in the market today. Build an addition onto your flip project only to the Read more…

Houses with no one in residence attract crime … and unlocked vacant houses, especially with valuable contents, virtually assure things will go missing in the dark.  It’s critical to protect your property throughout your project, and here are my tips for keeping everything safe.   It isn’t uncommon for vandals and thieves to strip wiring, plumbing, appliances, even remove cabinets and uproot landscaping from an unoccupied property. As if that weren’t bad enough, they may leave behind running water and damage that jeopardizes load-bearing frames.Even in good neighborhoods, overnight you can lose costly material and be left with a seriously Read more…

It may look move-in ready; it may even be staged to the nines – but it’s still a vacant property until the next resident moves in, and therefore a magnet for thieves and vandals. What are some ways you can protect your unoccupied flip house while it is being marketed and shown to prospective buyers? Some of the strategies for protecting an unoccupied house will depend on the neighborhood and the incidence of local crime. In some areas you may consider not putting up a sign in the yard advertising “for sale” or “for rent”,instead depending on listings and other Read more…