Flipping houses isn’t just about visualizing how to change a home; it’s also about being able to actually sell the house when you’re done renovating. Whether it’s your first flip or your 30th, having an experienced real estate agent on your team can significantly boost your likelihood of success. If you’re in the business of renovating houses, here are a few ways a real estate agent can help you become more successful.
When you’re flipping a house, your initial instinct is to think about what physical transformations the house needs to go through instead of your overall bottom line. A real estate agent can negotiate the price of the home you want to flip, which can give you more wiggle room for your renovation budget (and give you more overall profit). While a house flipper can certainly go it alone, it helps to retain a real estate agent that is familiar with the legal, accounting, and construction ramifications of flipping houses. Flippers typically work against the clock, so they must renovate a home on budget and then turn it around and sell it before the financing costs eat up their profits. In any case, an expert can ensure that the work is completed in a timely and efficient manner.
Budgeting the Numbers
By definition, house flippers attempt to buy a property and then resell it at a profit in relatively short order. In order to do this, however, the flipper must typically make some structural and/or cosmetic changes to make the property more appealing to the next buyer. If the flipper underestimates the costs associated with the refurbishment, he or she may be exposed to large monetary losses. Therefore, a flipper should be familiar with construction materials (their use and their cost), as well as local construction codes, the cost of local labor and the time it should take to do a given job. You and your real estate agent will mainly work together on the buying and selling process, which involves lots of budgeting. Your agent will know the market and networking skills and will have the ability to crunch the numbers. Before purchasing a home, your agent can help figure out a price point that you need to sell the home.
Reaching the Finish Line
After the home has been completely remodeled and professionally cleaned, it’s time to launch into the final marketing stage. Unless you are a licensed real estate agent, it’s a good idea to find someone who is licensed to list the property on the MLS. At the end of a project, a real estate agent can feel like a lifeline to a flipper. Renovation shows on TV may make it look easy, but flipping involves a lot of hard work and tiring days. If you’re doing both the renovation and the real estate work, it can feel overwhelming. A real estate agent is just starting their part of the work when you may feel like you’re absolutely spent on a project. One of the many reasons you would want a real estate agent is because at the end of a project, you are exhausted and burnt out. You worked long hours. But your real estate agent is fresh and excited because they are just starting.
Finding a Real Estate Agent
Finding and training the right agent can take your house flipping business to an entirely new level! It helps a renovation business to have an agent who enjoys the fast-paced work of flipping houses. Develop a great relationship with an agent who will be a part of your team and whose opinion you trust. Anytime you have a question about a certain area or property, you can contact them.
Whether you are working on a cabin, a luxury home or a 1980s tract home, we would be happy to assist your house flipping business.
Tom Reese has 20+ years experience in helping his clients sell their homes for a price that sells and makes them a profit. Tom has helped his clients buy and sell property in every neighborhood in Northern Kentucky and Cincinnati.
About Tom Reese
Helping my clients attain their dreams has been the foundation of my success. With my strong attention to customer service, I have earned my clients continued support and referrals. Put my enthusiasm and dedication to work for you!
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Tom may be new to rapping but he’s not new to real estate!