The key to succeeding at flipping real estate is to purchase properties for the right price so that there is room to make a decent profit. You will not be able to do this is you don't have a good understanding of the property values in your area. Here are some tips to assist you in determining the value of the properties you are thinking about buying.
The price of real estate varies quite a bit from one area to another, even from one neighborhood to another within the same town, so it is impossible for any article to tell you the value of a house. It is possible to tell you how to figure it out for yourself though.
One of the biggest things that can impact the value of a home is the school district that it's located in. A house that is in a good school district will be worth more than one in a poor district, even if they are right next door to each other. Property values are also affected by things like crime rates, the way the neighborhood looks and the average wages in the area.
If you are working with a real estate agent, it should be easy to get comps for a house you are considering purchasing. All you have to do is ask. These comps, or comparable properties, will give you an idea of what similar properties have sold for in the area recently. You can use this information to make an educated guess about the price you will be able to get for the home when you are ready to sell it.
Getting an accurate estimate of the cost of repairs is a very important part of valuing real estate. When you are new to rehabbing, you should ask two or three good contractors to inspect the property before you make an offer. They can give you an idea how much it will cost to get the house ready to re-sell. After you have been doing it for awhile, you should become familiar enough with the costs of various repairs to do the estimates yourself. When buying a fixer-upper, it is usually recommended that you allow room for at least $25,000 in profit.
When you buy a house with the intention of flipping it to another real estate investor instead of fixing and selling it to a homeowner, you must allow extra room for profit. Think about it, the person you are selling it to wants to make a profit too, so you have to buy the property cheaply enough to satisfy both of you.
If you follow these guidelines for determining property values, you will be well on your way to a successful career as a real estate investor. Remember, the amount of money you make on a deal depends on buying it for the right price. If you pay too much for a property, you won't make the profit you expected. Worse yet, you could end up losing money. - 31864
The price of real estate varies quite a bit from one area to another, even from one neighborhood to another within the same town, so it is impossible for any article to tell you the value of a house. It is possible to tell you how to figure it out for yourself though.
One of the biggest things that can impact the value of a home is the school district that it's located in. A house that is in a good school district will be worth more than one in a poor district, even if they are right next door to each other. Property values are also affected by things like crime rates, the way the neighborhood looks and the average wages in the area.
If you are working with a real estate agent, it should be easy to get comps for a house you are considering purchasing. All you have to do is ask. These comps, or comparable properties, will give you an idea of what similar properties have sold for in the area recently. You can use this information to make an educated guess about the price you will be able to get for the home when you are ready to sell it.
Getting an accurate estimate of the cost of repairs is a very important part of valuing real estate. When you are new to rehabbing, you should ask two or three good contractors to inspect the property before you make an offer. They can give you an idea how much it will cost to get the house ready to re-sell. After you have been doing it for awhile, you should become familiar enough with the costs of various repairs to do the estimates yourself. When buying a fixer-upper, it is usually recommended that you allow room for at least $25,000 in profit.
When you buy a house with the intention of flipping it to another real estate investor instead of fixing and selling it to a homeowner, you must allow extra room for profit. Think about it, the person you are selling it to wants to make a profit too, so you have to buy the property cheaply enough to satisfy both of you.
If you follow these guidelines for determining property values, you will be well on your way to a successful career as a real estate investor. Remember, the amount of money you make on a deal depends on buying it for the right price. If you pay too much for a property, you won't make the profit you expected. Worse yet, you could end up losing money. - 31864
About the Author:
If you have access to transactional funding, you get real flexibility to flip nearly ANY deal you want to do, including profitable pre-foreclosure deals. You can get all these crucial answers by going here Flipping Real Estate.
