How To Determine Property Values When Flipping Real Estate

Accurately estimating property values is one of the most difficult things you need to learn to do to be successful at flipping real estate

. It is important to be able to tell what you will be able to sell a property for before you buy it. This will help you determine how much to offer.

The price of real estate varies quite a bit from one area to another, even from one neighborhood to another within the same town, so it is impossible for any article to tell you the value of a house. It is possible to tell you how to figure it out for yourself though.

Real estate values are impacted by many factors, including the size of the home, how many bathrooms, whether it has a garage and what school district it is in. Of course, things like the crime rate and the perceived safety of the neighborhood make a huge difference in home prices.

If you are working with a real estate agent, it should be easy to get comps for a house you are considering purchasing. All you have to do is ask. These comps, or comparable properties, will give you an idea of what similar properties have sold for in the area recently. You can use this information to make an educated guess about the price you will be able to get for the home when you are ready to sell it.

Getting an accurate estimate of the cost of repairs is a very important part of valuing real estate. When you are new to rehabbing, you should ask two or three good contractors to inspect the property before you make an offer. They can give you an idea how much it will cost to get the house ready to re-sell. After you have been doing it for awhile, you should become familiar enough with the costs of various repairs to do the estimates yourself. When buying a fixer-upper, it is usually recommended that you allow room for at least $25,000 in profit.

Of course, you must allow for even more profit if you are going to sell the house to another investor. The investor will not want to pay more than what you would pay if you were buying it to fix up. You'll need to subtract at least a few thousand dollars from the price you would offer if you were rehabbing the house in order to leave room for both you and the other investor to make a profit on the deal.

Remember that the profit on a house is made when you buy it, not when you sell. In other words, you can't just increase the selling price to cover your cost and expenses because there is a limit to what people will pay. If you want to make money flipping real estate, you need to learn the property values in your area inside and out so that you don't get stuck taking a loss on any of your properties.

by: J.P. Turner

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