In my profession as a home inspector, I get to witness some amazing flipping deals. Some are profitable, some aren't. Here are the common mistakes I see flipper continuing to make. #1. Falling In Love With The Home: Hey, it's just a house built out of sticks and clay. There are thousands more. If you can't keep from falling in love with every home you see, then flipping homes isn't for you. Never forget it's a business, treat it that way. #2. Keep Your Mouth Shut! There's an old saying in the Navy. "Loose lips sink ships". More than once I've inspected a home for an Investor and have the Investor call up a week later saying they lost the deal to someone else. Some people just can't keep their mouth's shut. Wait until you walk away from the closing table to tell everyone what a deal you made! #3. First Impressions Are The Most Important: Spend the dough on the landscaping and exterior of the front of the home. I've seen more homes sold and more homes fallen in love with (see rule #1) from a great first impression than any other single item. Clean and shiny door knobs, door knockers, coach lamps and address numbers will add to the impression. If it doesn't add cosmetically to the home, get rid of it. #4. Don't go overbored The simple fact is that most homes can be flipped for a decent profit by cleaning and replacing the carpet and paint. Too many times flippers think they need to sink thousands of dollars on a home to make it sell. Many times what happens is they will remodel the home and it ends up being priced higher than anything in the neighborhood and sits on the market untill the Investor drops the price. Take a page from the flipping pro's book. Keep it to the basics. You're trying to make a profit, not make the front cover of a glamour magazine. #5. When In Doubt, Reread Rule #1 Some people need Rule #1 stapled to their forheads! #6. Don't Get Greedy! If you've priced your home well, then take the first offer that comes along. It's not worth your home setting on the market for months because you're too tight to come off the price a thousand or two. Reread rule #1! |
