Even though the real estate market has entered a "correction cycle," there's no need to sit on the sidelines, waiting for the market to rebound. There's still money in flipping houses, even during an economic downturn. Here are a few suggestions:
First, save money on your building materials. A good place to find discounted construction materials, paint, and appliances is at ReStore, the retail outlet of Habitat for Humanity. You can purchase quality used or surplus building materials, doors, lighting fixtures, and hardware for your project at a fraction of the normal price.
If you don't have a ReStore nearby, shop around for an appliance store that offers returned, refurbished, or scratch-and-dent appliances at a discount. If you let it be known that you're in the market for those kinds of items, you may find a store owner who'd rather sell those types of appliances to you rather than writing them off altogether. Ask. You have nothing to lose, and profits to gain--especially during a market downturn.
Another way to sell your house is to research your target buyers and then make sure your project meets what they're looking for. When the market's hot, you can get away with painting the walls white and installing neutral carpet, but when times are tighter, you have to be more creative. If you know your potential buyers, you can tailor your flipping efforts toward attracting them.
Along that same line, don't underestimate the value of staging a house to attract your target buyers and to prompt them to offer top dollar. You don't have to totally furnish it. Just add a few strategic decorations to prompt potential buyers to begin visualizing what their own furnishings would look like in the home.
Finally, it's important to close sales quickly during a down market. If you find someone who really likes the home, don't spend too much time negotiating. The term "buyer's market" means that buyers have the advantage, so when you find someone willing to buy your house, don't try to squeeze out every dollar of profit you can. Take your profit and move on, since you can never be sure when the next offer will come in--and in real estate especially, time truly is money.
It doesn't matter if the market is up or down. You can still make money flipping houses if you plan carefully--and then stick to your plan.
Free "The Truth about Making Money Flipping Houses" ebook at http://www.doghousetodollhousefordollars.com/free_flipping_houses_ebook.html
Copyright 2007 Jeanette Fisher