House Flipping Horror Stories! Don’t Over Invest

If you are entering the market of the house flipping, there are several things you need to know! One of the most important rules that many new players in the house flipping market don’t realize is that you should never over improve a property. It is vital to keep the house within the fair market value for the area to sell the property quickly. If you need help selling your home fast, make sure you follow these tips.

Don’t Over Invest For House Flippinghouse flipping

It is crucial not to over-invest in renovations for flipping houses because people can often get carried away. They don’t realize that raising the value of the home to $350,000 can cause problems when the best homes in the area are going for $275,000.

One professional house-flipper realized that this was a significant mistake. He quickly sold a house to an investor who wanted to redo the entire home himself and sell it for a profit. This is the typical house-flipping dream. The house was in average condition. It needed to be fixed up in some areas like having new paint and some essential repairs done. It also needed a new carpet and some wall patching done. The investor estimated between $8,000 to $10,000 in repairs or perhaps even less since he wanted to put in the work himself.

The property was even located in a perfect location for first-time buyers. This professional house-flipper decided these kinds of homes were worth investing in to keep the house functional and attractive but chose to leave the significant renovations to new buyers so they could tailor the updates to their preferences. They could add their fixtures, carpet, and fresh paint. Typically, the investor was willing to have the plumbing and electrical systems repaired and to have the furnace inspected to make sure it was functioning correctly. This allowed him to sell the house to a new family for their first home while feeling good about the project. The investor should have been able to make at least $25,000 in profit from this house, regardless of whether he did the work himself.

However, the investor got so excited about making the home more modern that he put in almost every upgrade that was available. He added high-end light fixtures and moldings, created a beautiful new kitchen that was updated even though the original kitchen was fine from the beginning, and he remodeled the bathroom. He even put a coat on the garage floor called epoxy-coating that is a beautiful feature, but it isn’t necessary for first-home buyers.

He discovered the problem when he went to sell the house. He put the asking price tens of thousands higher than the best properties in the area. Unfortunately, they couldn’t get any traffic to the house because the people in the area wanted an affordable property. It was undoubtedly the most beautiful home in the neighborhood, but he renovated it out of the current market. He would have to reduce his asking price and his profit to sell it!

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