The whole purpose of flipping a house is to make a profit, but sometimes you get carried away with the renovations and spend more than you need to. Making a profit on a flip is finding a balance between what a house needs versus what you would like to do to it. You need to know which renovations will make you money and which are just vanity projects. Let’s have a look at what to do with your flip.
Start with Necessary Repairs
If you know what needs to be fixed in your house then start with that. Fix broken windows, bad plumbing or faulty electrical and you should start with the big projects first. All of this should have come up in the home inspection so you know exactly what needs to be repaired right now. Don’t forget things like rain gutters and the basement along with holes in the wall.
Kitchens are what sell houses it is also where flippers overspend. Do the cabinets need to be ripped out or can you refinish them to make them look good. You may be better off refinishing the cabinets and spending money on a granite countertop instead. Look at the things that make money such granite counter tops or a kitchen island.
After the kitchen you want to focus your attention on the bathroom, it’s also something a buyer will look at very closely. Again you can resurface or paint any existing cabinets. You can install new fixtures like shower curtains and shelves. You may not need to rip out the bathtub and replace it you may just need to spruce things up a bit in there.
Don’t Forget the Curb Appeal
Don’t spend your entire budget on the inside of the house when the landscaping needs attention too. This is the first thing buyers see when they come to check out your home so invest the money in making it look good. Get the trees and bushes trimmed, mow the grass and consider investing in a brand new steel door. New doors provide a great ROI, they look good and make buyers feel safe in your home.
No matter how much work you did to make this house look good you still have to make buyers feel like this could be their home and you do that through staging. Clean it from top to bottom! Stick with neutral colors and standard pieces of furniture. An old realtor’s trick is to bake cookies on the day of an open house to make the place smell delicious and feel homier. Staging is more important than most sellers give it credit, it can mean better offers by more people.
If you want to make a profit flipping houses then you need to learn where to spend money and not overspend.