When house flippers buy a property to renovate and resell, they're looking to spend the least amount of money. They want to increase the value without spending thousands of dollars needlessly. That doesn't mean there should be shoddy workmanship or construction flaws though. Flippers have to balance providing a good home with keeping their costs down to a minimum.
Budgeting and Planning
Assess the Rooms
Not every room in the home needs to be torn down and remodeled. In many rooms, all you have to do is some vigorous cleaning and painting. The carpets can be steam cleaned. In rooms with original hardwood, you can rent a sanding machine and restain the wood instead of buying hardwood throughout the home.
Professional house flippers won't upgrade the heating and cooling system of the home unless there's a major issue with it. They'll perform cosmetic fixes that will give the home a polished, fresh look before turning around and reselling it. Unless it's a home purchased for an extremely low cost, most don't need major fixes.
Consistent Colors and Finishes
If you plan on flipping properties on a full-time basis, you can purchase items in bulk for more than one project. Many professional flippers will use one color palette on all their homes. They'll stick to the same finishes and cabinet pulls because they know it works together. This reduces the need to pore over the design plan on each project.
Save on Construction Supplies
Home improvement stores will have off-the-shelf items that can be used for many homes. You might have to customize cabinets to fit into the kitchen layout, but that's much cheaper than purchasing a custom set. Other items can be purchased from bargain stores too. You might have to shop around and think outside the box when it comes to the renovation supplies. That's often the essence of what the property flipper does all day long.
You're not purchasing paint that you would want in your own home, so your personal opinion won't matter. In the paint section of the local home improvement store, there will be a few gallons of paint that turned out to be the wrong color. It's a gallon of paint that the customer didn't want. It might have been the wrong color shade or the wrong finish. You can have them replicate the paint color quite easily. If there are a few shades of paint that are close, you can purchase these cheap gallons and mix them together.
Landscaping and Outdoor Spaces
The curb appeal of the home should be one of the last things to tackle, but it's one of the most vital to selling the home. Adding seating to the entryway can make the home welcoming and inviting. Trimming the trees and adding a few inexpensive plants can change the entire look of the home.
Many home buyers are looking for outdoor spaces where they can relax. It becomes an extension of the living space of the home. You can add functional square footage to the home just by adding some seating outside during staging.
Don't Over Improve
Check the Market
It's important that you don't over-improve the home past what you can get during the selling phase. Rules of Renovation says that it should be based on your budget too. If the neighborhood has homes worth $200,000, you shouldn't renovate with expensive appliances and finishes. You won't get a return on the money you spend since you'd need to sell the home for much more than the common prices in the area.
Planning and budgeting for your house flip is one of the most vital parts of the process. It'll save you money and ensure that you're using the best strategies possible with your flipping budget.
About the Author: Lizzie Weakley is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky Snowball. The information in this article is credited to Rules of Renovation.