Susan Ormont - RISK VERSUS REWARD: A SIMPLE GUIDE FOR INVESTING IN REAL ESTATE

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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. The Spring through mid-summer tends to be the best time to sell, and mid-winter tends to be the slowest. 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. Make sure your ARV (After R epair V alue) a nd renovation budgets are as accurate as possible. If you don’t have a good estimate for the ARV before purchasing the house, you can get yourself in trouble when it comes to your profit. Ask a r ealtor, b roker, o r appraiser f or h elp, a nd consider getting multiple estimates if you really want to cover your bases. Of course, you can’t have fair ARV if you’re not sure how much the renovation will cost. This i s why t horough i nspections with a professional are imperative whenever possible. Remember, it doesn’t have to be a magazine-ready house to sell, although one “wow-factor” item can often help your property stand out and sell more quickly. Overall, though, you just need to fix what’s broken and update what’s outdated. You also need to remember that almost every renovation undertaking will have something unexpected come up. A 10% contingency is key. This g ives y ou a g ood c ushion w hen you’re determining budgeting and your ARV.

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