Make Your First Home A Flip - Part 7
Most people that are purchasing a home, and many new flippers and new property developers, may tend to buy with the sale in mind, loosing sight of the money they can make at the purchase.
For many, new to the flipping game, the excitement of obtaining that first property can overshadow the fact that they have paid too much for it. This can be especially true at an estate auction or a sealed bid sale. Whether you are putting in an offer, attending an auction or placing a sealed bid, you should never exceed the maximum price you have decided the property is worth, which is determined from your research.
It can’t be emphasized enough how much importance has to be placed on researching what you can sell your flip for. This can be done easily with the help of a good agent and some leg work on your own. The market, not you, will determine what the property will sell for.
An inspection will also give you an indication of the extent of the renovations to be done and the cost. In an offer you can require an inspection as a condition of sale. Depending on the inspection results, you can re-offer at a new price or opt out of the deal altogether. It’s well worth a few hundred dollars to save you thousands. Remember in an auction or sealed bid, once you commit, you’re in all the way.
Getting the property, at the price you have determined at the purchase, is where you make you money in the end. The property will not sell for more than the market will dictate it will. You will not be able to make up your loss (over payment) at purchase, by increasing the price over the market value at the sale.
Bob Power has been has been buying and selling real estate for over thirty years. As a contractor, a real estate agent and instructor, he has the experience to advice others on how to do it right, and what to avoid. As well Bob is the owner an designer of Time Burst Clocks, unique, hand made, one of a kind collector’s item clocks.
You can read articles on real estate, home decor, finance and more on his web site Big City Open House.
Tags: budget, flip, flipping, home, investment, Make money, real estate, renovations