Written by Kate Broddick   |   Posted on   |   1,315 views

With the popularity of HGTV television programs that show how lucrative the house flipping business can be, it’s no wonder more and more people are becoming house flippers. Thinking of taking a house an adding to its value with renovations before re-selling it? Here’s our free house flipping guide for investors!

After you have put in some sweat-equity, it’s exciting to re-sell the property for some extra cash in your bank account. However, you have got to go into that kind of a transaction with your eyes wide open. You need to be well-aware of what is going to give you the best return on investment so that your flip doesn’t turn into a flop.

 

DECIDE WHAT YOUR BUDGET WILL BE

What you’re looking for is the diamond in the rough. You’re looking for a property that you can manage to fix up and then sell for a price that is comparable to the price of other homes in the neighbourhood. Don’t expect to dump a million dollars into the project and then re-coup that if none of the other homes in the area are selling for that much.

Your budget should include some leeway for unexpected expenditures. Heaven forbid you find out during the renovations that the house needs a new foundation or a complete re-wiring job. Be aware and ready for potential expenses that you were not ready for. Always have a contingency fund for such surprises.

TOP 5 RENOVATIONS TO GIVE YOU BEST RETURN ON INVESTMENT

1. THE KITCHEN

Keep it classic and neutral. Don’t spend a bundle on the latest trends when remodelling because buyers may shy away from gimmicks that look dated over time. Remember, you may not have to renovate everything in the kitchen. If the cupboards are in good shape, perhaps a coat of paint will bring everything up to date.

2. THE BATHROOMS

This is another high-traffic area that buyers like to see isn’t run down or dated. Updating the fixtures or cabinets can give the bathroom an entirely different look. If the bathroom isn’t laid out well, you may consider the larger job of moving the plumbing to a better location or opening up a wall to make it more spacious.

3. THE FLOORS

Nobody wants to live in a house with used-up carpets, broken tiles and scuffed up hardwood floors. Replacing the flooring in your flip-property makes the home feel fresh, and it makes a good impression. Many buyers like hardwood or laminate floors in the living spaces. Ceramic or porcelain tiles in the kitchens and bathrooms, or plush carpet in the bedrooms are also quite appealing.

 

4. THE WALLS

The walls are probably the easiest to tackle and making sure they’re in great shape is a good way of adding some appeal to your home at listing time.

Freshening up the walls with a nice clean coat of paint makes the home feel new to potential buyers. Try to keep the paints neutral. And if you’re not the tidiest painter, it may be better to hire a pro to do the job for you. Most local painters are quite affordable.

5. INCOME GENERATING SUITES

Is there a shortage of rentals in your area? Are students looking for a smaller space to rent in your neighbourhood? You may consider creating a separate suite in the basement or above a garage that could bring the new owners some residual income potential. Do some research (or ask your REALTOR®!) if this is worth your while. Any income-suites you build will need to be up-to-code so before you jump in to the renovations, get all your information first.

Our recent guide on How To Sell Your Home for the Most Money Possible is a great resource that will help you determine what your home is worth, and how to properly set the sale price during the real estate listing process.

HAVE A REAL ESTATE AGENT FIND BUYERS

When you’re finished with all the renovations, hiring a real estate agent will ensure your home-flip is given maximum exposure to as many buyers as possible. Your agent will provide you with professional photography and video tours of the home. They will give you advice on what the list price should be, and provide a strategic marketing plan to get that home sold. Once you sell, you can be on your way to your next flip!

THE TAKE HOME

Flipping a house can be a very worthwhile venture if you spend your money wisely and plan in advance. The first step is to ask your REALTOR® for help with finding that diamond in the rough. You can also find the right flip-home by doing a simple property search. Happy flipping!

*All information provided by the Brantford Regional Real Estate Association (BRREA) and ITSO for the highest number of completed transactions since January 1, 2015. All Brantford MLS® House Listings come from the various systems operated by Real Estate Boards and Associations across Canada. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used underlicense. The trademarks MLS®, Multiple Listing Service®, and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

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