If you are interested in earning money in the Atlanta real estate market, then you might be considering the option to flip a house. With the right circumstances, house flipping can be a lucrative business venture, and is essential that you have a good real estate agent by your side to help.
Is this your first time flipping a house? These are a few rookie mistakes that you need to avoid:
Overlooking Remodeling Costs
Buying the property is only the first step, you also need to consider the money that will be necessary to fix up the property. These costs can really add up, especially if you don’t have the right connections to help with the home improvement projects. Take a good look at the cost of the property as well as the anticipated renovation costs to ensure that there is enough of a profit margin to make it worth your time.
Compare Other Properties
Look at other similar homes in the area to identify the price point for that type of property. For example, if other houses in the neighborhood are selling for $250,000, then you shouldn’t expect luxury upgrades in your property to result in a price tag of $500,000. Talk with your real estate agent about other comps in the local area so that you have a realistic idea about the anticipated price tag once the renovations are complete.
Be Prepared with a Backup Plan
Everything doesn’t always go as planned, which means that you need to be prepared with a backup plan in case something goes wrong. When you are flipping a house, it is possible that you might have ownership of the property longer than you originally anticipated. In this situation, be prepared with a backup plan, such as renting the house for a while until the local real estate market improves. Or, another option is to drop the price of the property to sell faster and quickly recover your expenses, which helps you to get out of the home even if you aren’t able to maximize your profits.
Spending Too Much on Real Estate Commissions
Real estate fees can really add up if you are working with an agent who still uses the traditional 3% commission structure. Instead of wasting your house flipping profits on agent commissions, it is better to use a flat-fee real estate agent. At Duffy Realty of Atlanta, we use a flat-fee commission structure to help you save money. These savings can really add up, helping to maximize the profits that you earn from your house flipping efforts.
For more information about how you can benefit from flat-fee real estate commissions, contact our team at Duffy Realty of Atlanta. We are experts in the real estate industry, and we invite you to call us anytime for help with your real estate transactions: (678) 318-1700