6 Biggest Mistakes You Can Make When Flipping a House
Tips from the co-host of HGTV's "Flipping Moms."
— -- Jennifer Pate and Barbara Machen are hosts of the show "Flipping Moms," which debuts Thursday on HGTV. Jen and Barb became best friends years ago after meeting in a mommy and me class and joined forces to create an online community to help their fellow moms. They are hosts and producers of the award-winning web show, Jen and Barb, Mom Life, and authors of the book, The Mothers of Reinvention: Reclaim Your Identity, Unleash Your Potential, Love Your Life.
6 Biggest Mistakes You Can Make When Flipping a House
1. Paying too much for a house. Profit is only possible when you purchase a house at a price that leaves enough room to renovate and still sell it for more. Make sure you know what comparable homes in the area have been sold for in the last three months. Also, look at what is currently on the market for sale. You need to know your competition. You should know what you are going to sell the house for before you buy it.
2. Starting without a clear plan. In order to make a maximum profit you need to have a clear renovation plan, budget and schedule. Every week your house is delayed it is costing you money. Every time you ask the contractor to make a change you risk paying double what you would have been charged if it was in the original plan.
3. Overdoing it. Your price point and neighborhood should dictate what materials you put in a house. Know what the buyer will be expecting in that price range and don’t put expensive terrazzo tile in a house where buyers will be happy with ceramic.
4. Letting your ego get in the way. Price your house correctly, or even aggressively. It is easy to be proud of your work (and think it is worth a mint!) but remember, most buyers needs a loan and they may only qualify for a certain amount. So even if they are willing to pay what you think your masterpiece is worth they may not be able to.
5. Over stylizing. Do you love red walls in the dining room or custom green cabinets for the kitchen? In a flip stay neutral! You want to appeal to the taste of as many buyers as possible so don’t give a buyer any reason to turn up their nose. While buyers love turn-key houses they also want to put their own stamp on the house, leave them room to do so.
6. Having an open house with an empty house. This is your opportunity to not just sell a house but a lifestyle. It will cost you a bit more to stage the house with furniture and accessories (around $2,500) but staged houses typically sell faster and for more money.
For more flipping tips, tune in to Flipping Moms on HGTV Thursday, October 8 from 1-3 PM ET.
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