House flipping has been on the rise for some time and with a number of popular house flipping television shows being broadcasted daily across the country, it is easy to see why it is so appealing. A short, thirty-minute episode makes the overall process look pretty easy to flip a home and resell it for a large profit, but don’t be fooled! There is a lot more involved with flipping a house than what you see on TV. If you intend on taking the plunge and starting your own flip project, make sure you do your research and educate yourself on the do’s and don’ts of flipping a house.
What is House Flipping & Is it A Good Investment?
House flipping is when real estate investors purchase homes with the intention to flip them and resell them for a profit. Most of the time, the ‘flipping’ involves renovating and repairing the home to bring it up to date. This then allows the investor to turn around and sell the home for a much larger price, pocketing the profits. If done right, house flipping can be a great investment and can turn a good profit. Just as easily as it’s gone right, a house flip can also take a turn for the worst and can actually cost you money. This is why doing your research and making smart choices is always the best option!
5 Things to Remember When Flipping a House
Location is Everything!
Location is key when it comes to both purchase price and resale price, as purchasing a home in a great neighborhood is going to result in buyers also wanting to be in that neighborhood. Keep in mind who your target buyer is going to be as well. Knowing the liveability factors of the neighborhood you choose is going to play a large role in how you renovate and market your flipped home. According to the 2019 RE/MAX Liveability Report, six-in-10 Canadians put easy access to shopping, dining and green spaces at the top of their liveability criteria, along with proximity to transit, work and preferred schools. Work with a realtor who knows the market and area and can find you a fixer-upper in a great neighborhood at a great price!
Consider Your Target Buyer
Once you’ve narrowed down your preferred neighborhood, make sure you consider the type of buyer you want to purchase the home once the flip is complete. By doing this, you can renovate the home to cater towards their preferences and budget. If your target buyer is a new family, think about the kinds of features that will benefit them as their family and kids grow, whether that be lots of storage or good backyard space. If you’re renovating with the intention to sell to a professional couple, consider their lifestyle and what elements you can put into the home that will cater to them. Considering your target buyer can help to not only give you direction in the design and renovation phase of the flip, but can also help you with resale value, as your flip will hopefully check all the boxes for potential buyers!
Find a Reputable Contractor
After you’ve done the work of locating a great neighborhood and purchasing a home, it’s time to find a contractor to carry out the renovations required for your house flip. Take the time to interview different contractors to find someone who you are going to get along with and who understands your vision for your house flip. One of the best ways to find a great, reputable contractor is by asking trusted friends and family for referrals. It’s likely that someone in your circle has worked with a contractor that they trust and can refer their name to you. Don’t forget to also get quotes from your contractor, this way you are both in agreement with how much the renovation will cost and what the project timeline looks like. Another great way to find a reputable contractor is to visit the Canadian Home Builder’s Association website. They have lots of great tools and resources to help you find the right contractor for your renovation.
Consider Your Timing
Timing plays an important role in your house flip and because you’ll be making mortgage payments, you will want to sell the property as soon as you’re done renovating. Take into account the timing of your purchase, how long the renovation is going to take and when you plan on selling. When you start working with your contractor, make sure you set a timeline for the project and stick to it. If you can have a fast turnaround from purchase date to sale date, that is ideal as you then won’t be stuck having to pay the mortgage while the house sits empty, either mid-renovation because of going over your timeline or sitting on the market if you try to sell at a tough point in the year. Be conscious of your timing and plan everything out as best you can to avoid any situations that might affect your budget and overall profit.
Determine the Right Asking Price
Once you’ve completed your renovation, the final step is to determine an asking price for your project. Check with your realtor to determine the right asking price for your property. You want to make sure you’re attracting buyers, covering your expenses and making some money on the flip. Pricing too high for the neighborhood can turn buyers away, which will leave you stuck paying the mortgage while the house sits empty. Pricing too low might attract a number of buyers, but you may not make enough to recoup the costs and make a profit off of the flip. Your realtor will be able to suggest an appropriate listing number based on the location, liveability factors, upgrades and other comparable properties in the area.
While flipping a house is a lot of work and can seem daunting to those who have never gone through the process before, if you take the time to research and educate yourself, work with a great realtor and contractor and stick to your budget and timeline, you can reap the rewards of your hard work when your flipped property sells and you pocket your profit!
Want to flip a house in Fort McMurray? Click the link the below to search all properties.
Communications Coordinator RE/MAX of Western Canada
Kayley Jackson is a recent English & Creative Writing graduate, as well as writer and photographer whose love for words and being creative brought her to RE/MAX. As Communications Coordinator at RE/MAX of Western Canada, Kayley creates and oversees content that appeals to buyers and sellers alike, aiming to assist them on their homebuying or selling journey. Kayley carries out public relations, communications and social media content for RE/MAX, which includes creating content and writing for the consumer-facing blog at remax.ca. When she’s not behind the lens of her camera or writing away at her desk, Kayley can be found enjoying the Okanagan lifestyle in Kelowna, BC, where she lives with her boyfriend, or daydreaming about where her next travel adventure will take her. Email Kayley at firstname.lastname@example.org.
What are the most common home renovations you think will add value to homes in 2019?
We reached out to our RE/MAX Influencers – a panel consisting of RE/MAX Sales Associates throughout Canada – to put together some of the home renos they think will come before the rest in 2019.
First Impressions Are Everything
Exteriors are quite literally the first thing that people see when they come to your home. Fresh landscaping, new exterior paint, cleaning and/or painting the siding, or upgrading the outside doors are all good places to start. Outdoor space renovations and covered porches are also high up on the list of must-haves.
Sometimes the less “sexy” upgrades are the most important ones. In this market, people seem to be more concerned with things like the life of the furnace and hot water tank. It’s also important that the utilities are highly efficient. Upgrading to heat pumps instead of the traditional forced air systems that deal more efficiently and economically with changing outdoor temperatures are becoming more important.
Whether it’s to bring in supplemental income or to enjoy themselves, extra space is becoming a priority.
“Secondary suites or in-law suites. With rising interest rates many homeowners may need to bring in additional income to afford their housing costs.” – Loni Hamer-Jackson, RE/MAX Real Estate, Kamloops, BC
Kitchens & Bathrooms
“Kitchens and bathrooms for sure – that never changes regardless of what year it is!” – Lisa Salt, RE/MAX Vernon, Vernon, BC
Kitchen renovations are always a good place to start to add value to your home. Removing walls to design open floor plans in older homes is always good value. Adding an extra bathroom also goes a long way.
New floors is a good starting point as well when trying to refresh the place.
“Removal of carpets for cleaner air” – Judy Gray, RE/MAX Mid-Island Realty, Ucluelet, BC
It’s all in the Details
Most people would know that painting of the inside of the home can help with a sale, but pay attention to the little details. Shortcuts won’t help in the long run!
“When a home is freshly painted, but a buyer opens a closet door to find it has not been painted, buyers start to ask themselves what else has been “looked over”. Don’t miss the small stuff!” – Denise Gallup, RE/MAX Camosun, Sidney, BC
For more articles from our expert Influencers, click here!
How can you increase property value? It’s the eternal question being asked by homeowners, real estate investors and renovators. While the answer may seem simple enough, the wrong upgrades can actually decrease the value of your home.
According to television host, celebrity contractor and real estate investor Scott McGillivray, “It’s doing the right renovations that provide value to the people.”
Whether you’re buying a fixer-upper home, are renovating an existing house to suit your needs, or you’re planning to sell and want to get the biggest return on your investment, here are some tips to increase property value.
Scott McGillivray’s Top 5 Renos for ROI
Don’t discount the value (or rather, the potential value!) of your flooring. Pull up your dingy carpets, and particularly in older homes, you’re quite likely to find a treasure buried beneath! Oftentimes, hardwood floors will have been covered up for years, and could be in great condition. Refinishing those floors could be all it takes to update the look – and boost the value – of your home.
For a quick, easy and inexpensive home update, swap out the fixtures throughout your home. Every room has them, which means every room has… well, room for improvement! Replace damaged, worn-out or mis-matched door knobs, cabinet pulls, faucets and fixtures, to give your home a more modern edge.
Scott says paint is a simple and quick value-add to your home. “Use colour to enhance spaces and make changes. Change the way a space feels,” he says. For example, if you have a small, dark kitchen, consider repainting the walls and re-finishing cabinet in lighter, fresher hues to create the illusion of a larger space. Lighter, cooler colours make walls recede, so this is a great trick for any small room.
Believe it or not, adding a bathroom in an unconventional space is a growing trend that Scott is no stranger to himself. “What we’ve done a lot of times is under a staircase, we’ll add a powder room or a two-piece bathroom. You will add a lot of value.” If you’re short on space (or budget!) and adding a bathroom isn’t in the plan, renovate an existing bathroom. What’s trending? According to Scott, frameless walk-in showers make a big splash (pun intended!).
Number one on Scott’s list of ways to increase property value is (drum roll please…) renovate the kitchen. There are many areas to consider, and they all come at a cost. Scott says to tackle the task, start at the top and work your way down.
Take a good look at your home and see what you can do to improve property value. Once you do, you may never want to leave!
This article was originally published by Toronto Home Shows.
Cooling temperatures and the arrival of pumpkin spice everything doesn’t mean that you need to head indoors just yet. Using your outdoor living space is a great way to enjoy the changing of the season and enjoy some outside time. Consider these 8 ways to extend your patio season into the fall.
Add Some Warmth
Making sure that your outdoor living space is still enjoyable and comfortable will encourage you to use the space more often. Consider adding a patio heater that can easily radiate heat in a large of area for you and your guests. Choose from a variety of sizes and styles that fit your budget and the overall look of your outdoor patio area.
Hang Some Lights
You’ll need some extra lighting with the sun setting sooner than it was earlier in the summer. Hang a few strands of lights around the perimeter of your outdoor space in order to add a touch of sparkle to prolong those after-dinner conversations. Choose from different styles that cater to your unique tastes and personality.
Cuddle Up with Throws
As temperatures continue to drop, make sure to always have a stack of fresh, cozy throw blankets ready for friends and family so they aren’t scared back inside by the crisp fall air. Consider storing blankets in a weather-tight box outdoors to keep them dry and ready for use.
Add Some Ambiance
To create a truly enjoyable outdoor ambiance, consider adding a popular fire pit to your patio to encourage those guests to stay awhile. Not only does a fire pit add an extra layer of warmth but it provides a point of interest to an outdoor living space. Invite friends over to roast some hot dogs over the fire and indulge in gooey s’mores for dessert.
Sip Some Tea
Wrapping up in a cozy blanket to read a book and enjoy a hot cup of tea, or hot chocolate, is the epitome of fall that many homeowners love. Make sure to provide enough side table space next to outdoor chairs for ultimate comfort while diving into a good book. Use a simple outdoor tray to carry sweeteners and sugar cookies to enjoy with your warm beverage.
Leave the Leaves
You may want to immediately rake up fallen leaves on your patio, but consider letting them fall where they may to really set the scene of your outdoor space. The colors of fallen leaves provide those seasonal scents that remind of autumn-and they can be mulched for your fall lawn care needs.
Add Fall Color
Pumpkins are a welcome addition to any outdoor space this time of year. Pick up a few different shapes, colors and varieties of the orange gourds to add a pop of instant seasonal color to your patio. Stack and store pumpkins on your patio before carving them later in the season.
Have A Game Center
Fall is a great time to enjoy lawn games that carried over from the summer. Many homeowners find that fall is the better season to enjoy a quick game of horseshoes or croquet in the comfortable, cooling temperatures. Create a game center on your patio that is easy for guests to access and invite your friends and family to join you outdoors for a friendly competition.
Extending your patio season is easy with these eight tips to help your patio pop well into the fall.
The current trend of designing your home with greys, grey-ishes and now greiges (a grey-beige mix) may make it more difficult to be inspired to add a pop of color to your living space. RE/MAX recommends that you start small with an out-of-the-way, made-for-color room like a kid’s bedroom or entertainment room.
Customize Your Interior
There’s no need to go shopping for something new-use what you have. Don’t be afraid to add a bright green picture frame and add in a couple of colorful pillows, artwork and rugs that complement the decor. Suddenly-you’re a master at color! Our friends at Apartment Therapy offer a tour of The Most Colorful Home in London (Possibly the World) for further inspiration.
Make a Statement
Dramatic color can help you make a bold statement in your home. Find the perfect accent wall in your home that visitors will see as they first enter your house. Paint color says a lot about someone’s personality-make your favorite shade speak for you.
Start a Collection
Whether it’s pillows, dishes or vases – a colorful collection shows a coordinated look. Or curate a gallery wall that adds color and personality. Find some inspiration and start collecting.
Stop to Smell the Flowers
Flowers go with anything. By adding flowers to your home, you can instantly add a pop of color to any room and the beautiful scents are just a bonus. Don’t make it hard, shop local or just pick up a bouquet the next time you take a trip through your grocery store.
Ready to try your hand at a new color palette in a new space? Reach out to Dana McAroe, a RE/MAX agent, who can help you find the perfect new space to add a splash of color.
Hi, my name is Dana McAroe. I'm a Real Estate Agent in Fort McMurray. I help people get the best possible outcome from their real estate transaction - whether they are selling or buying or a house.