Answer to email question:
How do you still make money
flipping houses in a buyers' market?
Flipping Houses in a Buyer's
Market
By Jeanette Joy Fisher
Many real estate market
analysts' reports are scaring away beginning real estate
investors. For instance, you may have read my article on
a recent study conducted by Global Insight and National
City. That study came to the conclusion that a
significant number of America's housing markets are, in
the words of the study itself, "extremely overvalued."
Experienced investors know this good news (negative
report) means five benefits:
* Less competition from home buyers
* Extremely motivated home sellers
* Cooperative real estate agents
* Hungry loan officers
* Un-harried closing agents
The question remains: How do you still make money
flipping houses in a buyer's market? Here are five
keys to your dream investment portfolio:
1. Research: Follow your local real estate
market.
Become the EXPERT in your targeted geographical
location. For beginners, this means choosing ONE area or
neighborhood. Keep records of the following statistics:
* How many houses for sale in your specific area?
* How many sold last month?
* How many days did the house sit on the market?
* What did the house sell for?
* How much of a discount?
* What concessions did the sellers make? Call the sales
agent and ask if the owner provided seller's closing
costs or seller financing.
Also, check the houses in person. Don't merely rely on
statistics from a real estate agent, your loan officer,
or closing agent. When you get a list of comparable
sales, check the houses out. Drive around on "Open
House" weekends and see how the houses present
themselves.
When you know the heartbeat of your market, you
will know which property will make a great investment.
2. Spend Less on Improvements
Save money on building materials, paint, and appliances.
Check out ReStore--Habitat for Humanity’s retail outlets
where quality used and surplus building materials are
sold at a fraction of normal prices--for building
materials, hardware, lighting, doors, and oops paint.
Find an appliance discount store that offers like-new or
scratched appliances for half price.
3. Blow 'n Go vs. Design to Sell
Rise above the typical investor’s "blow 'n go" approach.
don't just spay paint everything white and install
boring beige flooring. Research your target market and
use colors and decorating details you know attract your
profiled home buyer.
4. Staging
Home staging becomes more important to sell for top
dollar. You don't need to furnish a vacant house, but a
few staged decorations help buyers visualize living in
the home. Your goal--set up suggestions of activities
that buyers connect with so they daydream about living
in your home.
5. Sell Fast
Stay ahead of the real estate market: sell fast. Don't
waste your precious time showing to other investors.
Look for home buyers who can't wait to LIVE in your
home. Negotiate with real estate agents on commissions;
know what services you will need and shop around. If you
select a full-service agent, make sure you get what you
pay for including their opening the home and turning on
the lights and air conditioning for other agents'
showings. Guard your sale. Keep the home buyers
motivated and keep the house in order for the all
important date--appraisal day.
Whoever said "knowledge is power" knew what they were
talking about when it comes to buying and selling real
estate.
Learn how to fix and flip houses! Free ebook:
"The Truth about Making Money Flipping Houses"
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Copyright © 2006 Jeanette J.
Fisher
