If you’re new to the world of flip real estate, there are a few things you should know, and a few things you’ll want to avoid. We’ve put together a few tips to help you flip real estate quickly in Montreal.
Reselling a home in Montreal can be a great way to generate a profit, but it’s never as simple as it looks on TV. So we’re sharing these tips with you in the hope that they’ll help you flip real estate fast!
First, you need to understand your location and market
We say that the value of a property is based first and foremost on its location. In fact, 60% of a home’s value comes simply from where it is on a map. House prices can change dramatically as you move from one neighborhood to another.
A house that’s worth a lot of money in a certain neighborhood might sell for a lot less if it were only a few kilometers away. Do your homework so you have a good understanding of property values in YOUR neighborhood.
Another thing you should define is your target audience. Who’s moving into your area? Families? Seniors? What are they looking for and what can they afford?
Don’t make too many improvements to the property
When making improvements you want to flip, keep in mind that small jobs can make big changes. When you flip a property, there’s no guarantee that you’ll get back what you put into it. In short, stick to replacing what no longer works and what looks old.
Don’t waste your money on perfectionism or endless improvements. If the medicine cabinet is old and ugly, replace it with something with a simple design (and reasonable cost).
Never forget that, no matter how many improvements you make, your property will never sell for $500,000 if it’s in a neighborhood where neighboring homes are selling for $150,000.
Set the selling price first
Before signing a purchase contract, make your calculations and estimate the price at which you will be able to sell it. Be careful not to overestimate the value of the property. You’ll need to sell at a low price if you want to find a buyer quickly.
Be realistic and stick to the numbers. Don’t make the mistake of thinking that a $40,000 investment in renovations will allow you to sell for $40,000 more.
Do your math before you start anything, and remember that renovations often end up costing more than expected, so have a cushion for emergencies.
Make only one price cut
When you decide on the selling price of your property, give yourself a bit of leeway so you can lower the price. Expect a drop of around $5,000 or $10,000 if you don’t receive much interest with the initial price.
You’ll probably want to make just one price cut. Lower your price several times, and your buyers will think there’s something wrong with your home or that you’re desperate to sell.
Before you embark on a major real estate investment project, you need to educate yourself and get in touch with professionals you can rely on.
