Flipping Homes – Repairs To Maximize Profits
We have been asked what kind of things could and should be done to maximize your profit when flipping a home. To find out we asked several individuals/companies that actively flip houses for advice on which repairs and upgrades are most important. Here is a summary:
Kitchen and Bathrooms: Redo them from top to bottom. If you are not sure what materials to use, look at homes that sold for top dollar per square foot in the area and copy them.
Flooring: In most flips, use laminate hardwood flooring in the primary living areas and carpet in the bedrooms. Laminate hardwood flooring is difficult to tell apart from real hard wood. It is not only much more durable, and scratch resistant; it is also less expensive.
Paint: Paint every room in the home. If the walls have a lot of minor flaws in them, use flat paint. Otherwise, use an eggshell finish. And always use earth-tones.
Back Patio: This is an often overlooked but important area. A simple $1,500 deck with two chairs, a small table in between them, and a couple wine glasses sitting on the table paints an awesome picture in the head of the potential buyer.
Landscaping: It is amazing what rocks, trees, and shrubs can do to increase the perceived value of a property. A good rule of thumb is to budget 1% to 2% of the final expected sale price of your home for landscaping. Plant a couple flats of fresh flowers the day before putting the house on the market. This simple, inexpensive final step will drastically increase your overall profit.
Roof: If the home needs a new roof, replace it. But factor this into your costs before you purchase the home.