Flipping St. Louis Houses: 5 Mistakes to Avoid
When flippingSt. Louis houses became popular on TV, everyone thought that they would do great in the real estate business. Some people found a new calling, while others learned what a huge mistake it is to purchase an investment property without any knowledge can be.
When looking into starting a real estate career avoid these common mistakes that many St. Louis flipping beginners make.
Negotiate a Lower Price
Many first time St. Louis investors simply pay too much for a house. They are not aggressive enough with their offers and fear they will lose a potential investment property.
The main goal in flipping St. Louis houses is to pay as low as possible and to sell as high as possible. When purchasing a house close to the asking price an investor is taking away the ability to make a profit off the property.
Choose the Right Renovations
Not every property needs a brand new kitchen. Similarly, what works in one St. Louis neighborhood may not be ideal for another.
Choosing which renovation will help a house sell can be difficult. An investor needs to research the area and learn who is currently looking to buy to choose which renovations will be best.
For a neighborhood that families are investing in renovating the yard to be safe and appealing to parents will help to sell the St. Louis property. Somewhere that has mainly young college students may have a need for a renovated office space. Always think about the potential buyers.
Breaking the Budget
Choose a budget that will be comfortable for the project. Never go over this budget. If something costs more than budgeted for the money will have to come from somewhere. In these instances, repairs or updates can suffer.
Be realistic about the budget and stay as close to it as possible. In the end, the money that is lost is coming out of the investor’s pocket.
Selling The House for Too Much
When an investor sees that their renovations are costing too much this can push them to put the house on the market with too high of a price tag. By listing too high the seller is losing out on many potential buyers.
A price must be set that is reasonable for the market and the quality of the property. Even if an investor has spent a lot of money and time on a property that does not always mean they are going to get that higher price.
Taking Any Offer
Some investors make the mistake of only looking at pricing when considering offers. Sometimes the highest priced offer is not the best offer.
If a buyer has a lot of contingencies connected to that offer it could mean that they are going to walk away without closing the deal. Taking a lower offer that does not have any contingencies can mean closing on a deal much sooner.
Buying St. Louis properties to renovate and sell can bring an investor money. It can also teach them that not every investment is worth making. Any new investor should be careful about the properties that they take on. Research in the St. Louis market and how much the house could sell for is important. Making a budget and sticking to it is essential for getting a good offer on the property.