Why Now is a Great Time to Flip a House
House flipping may have been most popularized by the many HGTV shows that have come out in the last twenty years, but it’s taken on a life of its own. Not only does flipping homes give you a chance at a major income, but it also allows you to create livable spaces where families can skip the work and start their lives.
If you’re eager to see how this industry could be something that will benefit you: these are the top things, you need to know.
Profits Are Higher than Ever
The average home is currently selling for almost double what it was worth just ten years ago, and many properties are continuing to sell at record-breaking numbers. In addition, the pandemic reminded people of the importance of having their own space, which encouraged plenty of people to make the leap and purchase a home while they could.
At the beginning of 2020, house prices dipped momentarily as people sold to move to more rural areas, but by the end of the year, the market got hot. In 2021, we’ve been seeing homes sell for hundreds of thousands of dollars more than they would have pre-pandemic.
If you’re a house flipper, this is a clear opening to make major returns.
The Materials Are Finally Available Again
In 2020 and early 2021, most of the USA was in a major shortage of building materials. A lot of this came down to the pandemic slowing the creation of these products, but some of it also came from how much people were buying to try and do house repairs while they were stuck indoors so much.
This lack of availability, and high demand, caused the price of construction produced to skyrocket and made common products like a garage door pergola kit to become incredibly hard to come by.
Materials are becoming available again, which means there’s finally an opening for those who want to make repairs or flip homes.
Many Properties Are Inexpensive Right Now
There are plenty of properties that are selling for less than expected. These properties need a lot of work, show their age, and need improvements that the average buyer doesn’t want to take on. Sellers of these properties are getting desperate, and you can see that in how low they’re going for.
Although there are some areas this is more prevalent in; you can find project properties in nearly every city. It’s important when looking at these properties that you know how much you can handle.
Looking up how to repair drywall after removing wallpaper is something anyone can do. Still, if you have to worry about installing an aluminum soffit and you’ve never done it before, you need to make sure you can either afford a professional or afford to make a mistake.
Doing Renovations Yourself Will Save Money
If you’re handy and can do renovations yourself, you’re going to save a lot of money. Unfortunately, many construction and building workers have raised their rates by a large amount, making house renovation projects incredibly expensive for anyone who wants to take part in them. Fortunately, if you can handle yourself around the best interior wood stain and sealer, you can handle most projects a home will send your way.
Every professional knows that every house flipping project will throw a couple of surprises at you, so be aware that you may still have to hire a professional to step in and complete some construction work, but if you’re handy and know what you’re doing, you should be able to cover most projects.
You Can Sell In the New Year
The best part of buying a home right now to flip is that you’ll be ready to sell in the early spring. This is always the wildest time of the year in the housing market since people are fresh from their tax returns, with their eyes on buying and moving before either a new school year starts for their children or the heat starts in southern states.
Buying a property and fixing it up at the end of the year will give you the chance to sell quickly and for a larger profit once the weather warms up again.
Flipping Houses Can Be a Great Source of Income
Whether you’ve flipped dozens of homes before, or this is going to be your first foray into the world of real estate: if you do it right, you can make major money in this industry. Above all, ensure that you buy low, don’t bite off more than you can take, and create a home that you would want to live in. The money will follow.
Brian Jeffries is the content director for the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.