Major real estate projects have the advantage of buying things in bulk and saving on the cost per unit. On the other hand, a private builder without similar resource and working on a small project will end up paying the retail price for most inputs, and that skews the profit math. Making smart choices about materials to use in your renovation project for your office or home is one of the wisest things you could do. Remember that the materials contribute significantly to the cost of the eventual structure. Your property value may not reflect the selling price quote you get. If you are renovating to flip the house, then you should be careful with the changes you make.
Do Not Go for Less Functional Changes
If you are to renovate, then consider only the functional features of the house. For instance, you could want to check out the kitchen, lounge, and bedrooms to find out the level of heat getting into these rooms, and whether they manage to control it effectively. You may want to check out the windows since they contribute immensely to the heat gain or loss during a typical day. When you do that, you would be making a conscious choice about what to fix or not to fix in the house.
Consider the Market Situation
At other times it might be okay to introduce a pool in the backyard, but only if the market is going up and people are having high levels of disposable income. If credit is getting tight, you will not get the same level of appreciation for adding amenities that increase the price of the house. Therefore, stick to the basics at such times. You may consider a paint job done well and a plumber to fix all leaking taps and pipes. After that, an inspection by an electrician might be all you need before you lift the property on the market for sale or renting.
Try and Do Things in One Project
A problem with some novice realtors is that they try something out and finish it them think about another improvement that might be useful for the house. The problem with the step-wise improvements is that they cost a lot of money. The business of flipping houses requires a thorough look at the process to find out things that can go all in one to save time. Time saved is equivalent to the cost of the experts you would have to hire at an hourly rate. The savings allow you to sell the house at slightly below market rates and still make a decent profit.
Work Closely with Financiers
Most of your buyers will be requiring mortgage finance to afford the unit. The best help you can give them is to point them to a bank or other type of financier that already shows interest in the properties in your area. They will get fast approval based on their income status and the value of the house. You will also be getting a steady stream of customers when you use this model.…