Agents can help you understand fair market worth, identify which fixtures and finishes will be most attractive, and maybe even find you a buyer when you’re completed, whether you’re renovating and flipping in an area you know intimately or a new place where you’re not as acquainted.
But that is not all. Continue reading to find out why a real estate agent is one of the best partners you can have in a fix-and-flip project.
Securing your finances
If you’re not paying cash, there are a few things you should know regarding second-home mortgages that don’t apply to primary residences. To begin, various lending standards exist; lenders normally want a full 20% down payment on any second house you purchase, and there are no programs that accept smaller down payments.
A real estate agent can not only put you in touch with a loan officer who is acquainted with second-home mortgages, but your agent can also assist you find other charges that you may not be aware of. For example, utilities. You’ll most likely need those switched on and working while you work; it’s difficult to rebuild a house without lighting.
Creating a budget
Initially, your budget may simply be the amount of money you can afford to spend on buying and fixing up the property, but a real estate agent may help you go much more specific so that you can plan how much you’re spending on what and when.
Agents are familiar with the costs of refinishing a floor, renovating a kitchen or bathroom, updating landscaping, and a variety of other large home improvement tasks. Agents also know which finishes and fittings are popular among purchasers in the area, and they may assist you in determining any budget line items that you are overlooking or overlooking.
Finding the right home
Of course, an agent can help you find a home in that price range — but an agent can also assist you realize how much work will be necessary in fixing up any specific property. Some homes will be in better condition than others (and some will be in worse), and if this is your first flip, you’ll need an expert advisor who can tell you whether “this is a good deal that won’t require too much heavy lifting” or “even though it’s cheap, you’ll spend more than it is worth trying to get it ready for buyers.”
Also Read: 9 Fixture and Upgrade Tips for New-Construction Homes
Negotiating the sale
Every day, real estate agents deal with home sales. They are familiar with every negotiation strategy in the book, even some you may not have considered, such as giving the sellers influence over the transaction timetable or offering to let them stay in the home for a longer period of time than usual.
When you have a real estate agent handle the negotiation for you, you not only have an advocate who is looking out for your best interests, but you also have an expert who can come up with creative solutions to get everyone what they want.
Inspections and closing
Even if you’re doing extensive home improvements, you don’t want to skip the inspection — after all, if there’s a structural issue or a larger problem that you can’t address on your own, you need to know about it before closing so you can decide whether it’s a deal-breaker.
An agent can help you in locating an inspector who excels at detecting major issues. If something serious goes wrong, an agent can assist you decide whether it’s worth it to continue with the deal or whether you should search elsewhere for your first flip.
Securing permits
Do you know what permits you’ll need to make the adjustments you want to make? A real estate agent can help you with this, as well as advise you on how to manage the bureaucratic red tape so you don’t miss anything.
You don’t want to discover that you haven’t secured permissions for updates and fixes when a buyer inquires about their location. Make certain that everything is in order ahead of time by consulting an expert and seeking assistance.
Finding help
If you’re a general contractor who has previously built homes and this is your first flip, you might not need any assistance.
But if you don’t construct or repair houses for a job (and honestly, even if you do), it’s always a good idea to assemble a crew of dependable competent laborers. You may also want the services of an expert on occasion for tasks that are outside your realm of understanding.
Pricing to sell
An agent can help you in avoiding this trap by showing you how quickly similar properties in the neighborhood have sold at various price points and can establish a price that meets your budget while also being acceptable and realistic for the market, bringing in the largest potential pool of buyers.
Finding a buyer
Agents know a lot of people, including other agents who have home purchasers. When it comes time to sell and you need to find a qualified buyer, agents know exactly where to look and how to market your home so that any buyer who might be interested knows it’s available and comes to see it.
Thinking about BUYING or SELLING a Home,
Richi Khanna can help you and if you have any questions in regards to real estate, then you must call Me today! at
647-997-1281
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