On paper, flipping a house sounds straightforward: Buy a home, spruce it up, and sell it quickly for a profit. Flipping houses attracts a lot of attention principally because it’s a mainstay of reality television. Although flipping can be lucrative, costly mistakes may stall or even stop a home for sale. Here are several errors that novice house flippers should avoid.

3 House-Flipping Pitfalls to Avoid

1. Rushed Home Purchases

New house flippers may be overeager. As a result, they may purchase a home for sale without knowing how much it may cost to ready the property for the market. They may lack industry contacts who could help them find reputable contractors who can competently make repairs and upgrades on a deadline.

Working with experienced real estate agents helps eliminate these risks. They have intimate knowledge of the area and buyer behaviors. Through their networking circles, they can also connect you with licensed contractors who specialize in house-flipping projects. 

2. Failure to Research the Market

It’s tempting to snatch up available homes. Some house flippers, however, don’t undertake adequate research. You should know how long the house has been on the market and the neighborhood’s prospects for economic growth. What does the crime data indicate, and are there good schools in the community? All of these factors make a difference to home buyers and determine if you’ll make a profitable sale.

3. Lack of Cash

It takes money to make money. Between buying a house, making repairs, and securing a loan and insurance, you’ll need upfront funds. Without cash, you can quickly overextend yourself and end up in a financial hole. Establish a realistic budget before you buy a home for sale. Determine the amount you can afford to spend on the purchase and renovations. Before you buy, always secure a home inspection. Without it, you may encounter expensive electrical, plumbing, and structural repairs. 

If you’ve dreamed of flipping houses to generate additional income, Hensley Realty Co will help make your vision a reality. Based in Russell, KY, their real estate agents specialize in helping new and established investors. From financing assistance and inspections to appraisals and connecting sellers with buyers, you can count on reliable and professional service. To learn more about house flipping, call (606) 836-9770 to schedule a consultation. You can also browse through their listings of homes for sale online.