In the past, we have mentioned the concept of property flipping and explored whether this could be the right choice for you. If you don’t know property flipping, is where you buy a fixer-upper, clean it up and then flip it on the market for a much higher price than it was originally worth. You can make a fair amount of profit if you approach this the right way. However, it’s full of hurdles that you’ll need to jump over and this all starts with buying the fixer-upper itself. That’s what we’re going to explore today.
Take These Steps Before You Buy A Fixer Upper
Know What You Can Handle And What You Can’t
First, you need to make sure that you understand where your skills begin and end in terms of fixing up a property. You might have a wealth of DIY skills that you can use to your advantage here. But you could still require specialist services to help you along the way. For instance, it might be useful to invest in the services of a carpet cleaning business. A carpet cleaning company will be able to remove the toughest stains if you decide to leave the carpets down rather than ripping them right up.
Research The Market
The key to buying a fixer-upper is knowing the floor price. This is the lowest price that a seller will agree to let their home go for. It’s how you do make a solid profit with this concept. There are a few ways to find the floor price. However, the best option is always going to be completing the right level of research. With the right amount of research put in, you will be able to guarantee that you don’t end up in a situation where you pay a lot more than you should for a home.
Find The Right Surveyor
You will also need to make sure that you are hiring the right surveyor on the market. There are lots of surveyors for homes around but yours needs to be the absolute best and meticulous when completing checks on the home. You can’t afford to find any surprises lurking in the walls or the roof once you have committed to a purchase like this. That’s how a fixer-upper quickly transforms into a massive money pit.
Prepare Your Finances
Finally, you need to make sure that you are preparing your finances for this possibility. You must consider how much you are going to need to put in and this could be anything. It will differ depending on each individual home. However, you must have the capital available to complete the right repairs and DIY jobs. If you don’t do this, then you could be stuck with a home that you can’t afford to fix up and that basically will be impossible to sell on the market. This is the last thing that you need.
We hope this helps you understand the key points that you should think about before you invest in your own fixer-upper.