Flipping homes can be a great way to make money. It can also end up being a financial disaster. Flipping a home involves purchasing a house that needs at least some renovation, completing the renovation as quickly as possible, and then selling the house for a profit. Around 5.5% of all single-family homes and condos sold in 2015 were flips, compared to 5.3% in 2014. Flipping homes is becoming more popular as a way to bring in income, which means it's harder than ever to find an appropriate property for flipping. Hiring a real estate agent can help with the search. Here are three reasons why.
They Know The Inventory
A well-connected real estate agent will know the inventory in an area better than almost anyone, giving them a much better chance of finding an appropriate property than the average flipper. The key to finding a good home to flip is finding one that is listed at a low-enough price to make the flip worth it. A real estate agent will be able to help the buyer come up with a reasonable offer and be able to estimate the home's value after the improvements are completed. This information is essential when deciding whether or not to flip a home.
Access To Foreclosed Properties
Another benefit of using an agent is that many have access to foreclosed properties. Real estate agents that specialize in foreclosed properties often have long-standing relationships with banks and may even know about new listings ahead of time. Foreclosures can be difficult to navigate, and purchasing one can take time. A real estate agent can help navigate a flipper through this process. Purchasing a foreclosure can pay off. Foreclosures can save buyers up to 40% off the value of the home. This leaves more room for profit once the home is renovated.
Knowledge Of Nearby Developments
Real estate agents also have knowledge of future developments that may be built in certain neighborhoods. Big changes to a neighborhood can lead to major changes in the value of a home. Hiring a real estate agent can help flippers avoid flipping a home in an area that may see fluctuations in home values due to new nearby developments.
Flipping a home can take time, effort, and money. However, it can also lead to big profits if the right house is flipped. Hiring a real estate agent is key for potential flippers. Real estate agents are able to do the research to find buyers the best properties for flipping. They know the inventory, have access to foreclosures, and their knowledge of future developments can help buyers make an informed decision.