The good news is that there are things you can do to lessen the likelihood of a flop.
Pay attention to the market.
Be aware of the average number of days properties sit on the market in the location you’re flipping. You should also look for trends over longer periods of time (year-over-year). I suggest checking once a month, if not more frequently. Be thorough by getting your research from both local and national resources. Of course, the market can and does change, and isn’t entirely predictable, but by paying close attention, you’ll be better able to act and react accordingly.
Know your neighborhood.
What are the overall trends in your area? Is the population steady, increasing, or decreasing? Check out census.gov to find out. This is important, because you’ll be able to charge more if the area’s growing, but you might have problems if it’s declining.
Read the bank’s fine print.
Interest rates change all the time. If they go up, some buyers might not be able to afford loans; if they go down, your buyer pool may increase.
Work with the seasons.
While unexpected hits could cause your construction schedules to change, do your best to shoot for putting your home on the market during peak times. Mid-summer tends to be the best time to sell, and mid-winter tends to be the worst. That doesn’t mean you can’t sell your house in February; it just means that it might take longer, and you might have to list it for a lower price.
158
Powered by FlippingBook