The Successful Flip

In the 2011 Edition of Victoria Homes there was a very interesting article called “To Make a Successful Flip”.  The article outlined some strategies and considerations that those hoping to turn a profit from purchasing a property, renovating it and then reselling it in a  relatively quick time frame should keep in mind.  I thought it made some really great points and wanted to share a few key tips.

 

 

1. “You need to know the costs before you start.” -This is the key to every successful flip. Surprise expenses will cut into your profit margins.  Having a clear picture of what renovations will cost is important but don’t forget to factor in the costs of carrying a property until it sells and the dispersal fees as well.  Have your REALTOR® go over all the costs associated with the transaction on both ends with you.  This will allow you to budget for things like property transfer tax and whether or not there are any exemptions that apply to you.

2. “Get to know the neighbourhood.  In the end the smallest house in a more desirable area will sell for more than a larger house in a bad one.” – The golden rule of real estate:  location, location, location. Especially in the case of a flip because you don’t want to be stuck with a property that will take a long time to sell or will force drastic price reductions.  Both a long selling time and reduction in sales price will eat into your profits.

3. “Invest some time and money staging your home for sale.” – This is an especially important tip given the current market environment. You’ve invested time and money (and if you’ve done some of the work yourself: sweat and tears too) into this project and as mentioned above you need it to sell as quickly as possible to realize maximum profitability.  While it’s my belief that staging will not necessarily get you higher offers it will help your property outperform the other product on the market which ultimately leads to a quicker sale.

Beyond the tips mentioned here the article had a plethora of helpful information.   For a tailored project specific analysis of the costs and viability of your flip contact us today.