How to Determine Materials for Flipping a House
Flipping a house is an exciting but sometimes overwhelming way to make money. When you decide to take on a house to rehabilitate and flip for a profit -- meaning you buy it at a low price, make it over, then sell it for a higher price -- it's important to make changes that will increase the home's value, without being excessive.
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Instructions
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Hire a home inspector to examine the house, if you didn't do so before purchasing. It's important to get an objective assessment of the home and make sure there is nothing structurally wrong with it.
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Invest in cleaning materials. Cleaning can go a long way toward improving the house's value, especially with a neglected home. Invest in a steam cleaner for rugs if they're salvageable, a floor sander, plus a pressure washer for decks, siding, concrete walkways and driveways. These items can all be rented as well.
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Go through each room and make detailed notes about what's required to make the room presentable and livable. Your home inspection will tell you what's needed to make it structurally sound, but you also must assess what will make it saleable. If you're unsure what needs to be done, consider asking a home stager or even a real estate agent for a consultation. Home stagers and most real estate agents can tell you if living room carpet can be cleaned or if it should be replaced, for example, or if your kitchen counters and cabinets should be torn out and redone or simply refaced.
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Make a list of items needed for each room. Start at the floor and work your way up to the windows and ceiling trim. Don't leave out anything. If the room needs new switchplates, make sure to write it down. Walk into a room, such as the bathroom, and examine each item as if you were a buyer looking to buy the house. Look at the fixtures, try them out and decide if they need replacing or a good cleaning. Look over the bathtub. It might be fine with a good scrubbing or it may need refinishing. In some instances, you might find you can make a bathroom appear larger by getting rid of a bathtub and its surround and replacing it with a simple shower.
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Pay attention to the outside of the house. Invest in landscaping that's simple but attractive. You don't want to put thousands of dollars in mature trees, but flowers along the borders and trimmed shrubs will go a long way toward making a sale. You want buyers to see the potential of the yard, not a huge mess they have to clean up.
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Stick to your budget. It's important not to invest your potential profits into the home if your intent is to flip the house. Purchase used materials by shopping at flea markets and thrift stores. Keep careful track of what you spend.
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