One reason why home improvement shows are so popular on TV is that the folks on the shows make it look so easy. But what the TV shows don't show you is all of the planning and organizing that's done way before the first hammer is swung that make a successful flip.
For every profitable flip you see on TV there are a hundred that didn't work out. I can point to several houses on the market right now in our area that started out as flip houses, but are now incomplete projects.
Just wanting to be successful is no guarantee. And working hard doesn't always make up for mistakes. The most important part of flipping houses is knowing what the finished home will sell for, regardless of how fancy you remodel the house.
This is very important to understand: Blair County is not Southern California or Phoenix or Miami. A 3 bedroom 1 bath house in good condition in a $60,000 neighborhood will sell for $60,000. Period. That same house with granite countertops, a jetted tub, custom made cabinets, and new turf in the yard will still sell for $60,000.
There's good money in flipping houses around here (I know this personally). Use a realtor to give you good advice on what to pay for the house, what buyers would like to see in the house, and what a reasonable selling price would be. Then do the math: get good estimates on the work and see if there's any profit in the house.
Better yet, call me if you want to give it a try!
Friday, August 17, 2007
Wednesday, July 18, 2007
Location, Location, Location
It may be a tired, worn-out phrase in my profession, but "location, location, location" is worn out for a reason--it's everything in this business.
I recently helped a couple move to this area from the Midwest. Since they had no children, the school district was not a consideration for them. And since both were self-employed with an internet business, work location was also not a factor. Just about any house in their price range would work. Sounds easy right?....
Well, we looked at houses for weeks from one end of the market to the other. Since just about any house in the price range would work, just about EVERY house in the price range seemed right. It was very frustrating for them to decide. The ironic thing was that once they did find the right home, the biggest factor they cited on why they chose this home was "because of the area".
Even if you're moving within the zip code, it makes things easier to settle on a street or neighborhood. Even if you don't have children, the person who will buy your home when you eventually move on may, so schools should still be considered.
Location should also be a top consideration for investors too. Just because it's a rental doesn't mean that renters will live in a bad area. In fact, renters will pay more and will stay longer in apartments in nicer areas.
And location makes it easier to sell the "flip houses". Don't be tempted to buy that fixer-upper just because it's cheap. If you can't sell it (because it's in an "iffy" area), it doesn't matter what you paid for it--you paid too much! It is so much easier to sell a nice house in a nice area than it is to sell a nice house in a poor area.
I recently helped a couple move to this area from the Midwest. Since they had no children, the school district was not a consideration for them. And since both were self-employed with an internet business, work location was also not a factor. Just about any house in their price range would work. Sounds easy right?....
Well, we looked at houses for weeks from one end of the market to the other. Since just about any house in the price range would work, just about EVERY house in the price range seemed right. It was very frustrating for them to decide. The ironic thing was that once they did find the right home, the biggest factor they cited on why they chose this home was "because of the area".
Even if you're moving within the zip code, it makes things easier to settle on a street or neighborhood. Even if you don't have children, the person who will buy your home when you eventually move on may, so schools should still be considered.
Location should also be a top consideration for investors too. Just because it's a rental doesn't mean that renters will live in a bad area. In fact, renters will pay more and will stay longer in apartments in nicer areas.
And location makes it easier to sell the "flip houses". Don't be tempted to buy that fixer-upper just because it's cheap. If you can't sell it (because it's in an "iffy" area), it doesn't matter what you paid for it--you paid too much! It is so much easier to sell a nice house in a nice area than it is to sell a nice house in a poor area.
Monday, July 2, 2007
It Ain't As Bad As You Think
Ahhhhhhh!!!! I'm tired of hearing how bad real estate is around here. It's not! According to data in our local Multiple Listing Service, the average home sale price in Blair County has increased 6% in the last year. INCREASED 6%!
Blair County is such an isolated market that many times what goes on in other markets never does happen here.
The problem that were ARE having in Blair County is low inventory. There are less homes for sale right now than in years past. And I think it's because everyone thinks that their home will not sell or will not sell for a fair price because the "market's down".
I can't tell you how many buyers I represent that cannot find a good home. Nice homes are few and far between at a time of year when it shouldn't be this hard to find one. It's very frustrating as an agent....
So....
If you are putting off moving because you believe what you hear and read, call me. I'll give you the straight dope.
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