Known for its charming historical homes, Norman has experienced immense growth in the past decade. Instead of the traditional selling process, many residents have welcomed the idea of rentals to accommodate the university students that come and go with each passing year.
If you’ve been interested in flipping homes in Norman, you need to be strategic with the properties you buy and more importantly – the repairs you make. You also need to be prepared to hold onto the property if it doesn’t rent right away. If you’re in the market to buy a house and turn it for profit, here are some key things you need to know.
Once you’ve found a property, the first step is creating a renovation and repair budget. Even if you’re planning on renting it out, you’ll calculate this budget based on the approximate selling process.
Run a comparative market analysis of the homes in Norman, similar in location, age, square footage and features. Then, deduct how much you paid for the house, the other expenses that were included (such as real estate fees) and the profit you’re hoping to make on the property. This process will line out how much you have to spend on repairs.
1. Nailing the First Impression
The rules for flipping are fairly similar to those of selling a home. First impressions are critical, so focus on those first. If you’ve ever watched a show like House Hunters or Fixer Upper, they always have one thing in common. They highlight the buyer’s first impression when arriving at the property.
A negative impression is hard to come back from so it’s crucial to ensure the property has great curb appeal. Remember, it’s all about creating excitement for what’s inside.
Here are some exterior tips, updates and renovations that’ll wow your potential buyers:
· Power wash the siding
· Repaint all trim work
· Replace window casings
· Paint or replace the front door
· Replace hardware like door knobs
· Install outdoor lighting
· Plant new flowers
· Install a new mailbox
· Add shutters
2. Prioritize Kitchens and Bathrooms
When developing your renovation strategy, it’s important to remember that not all improvements are created equal. Home offices, concrete patios and athletic courts generally don’t add much return value while updates to kitchens and bathrooms help you get top dollar.
Not every kitchen or bathroom may need a complete overhaul. However, there are always opportunities to update the cabinets, fixtures, hardware or lighting.
3. Small Improvements Can Help You Score Big
Remember the last time you toured a home? The owner may have loved that lime green living room but we doubt you did. Just remember, what you may think is beautiful may not appeal to most people. We recommend using soft, neutral colors especially if you’re investing in big-ticket items like new countertops, flooring or carpeting.
If you’re looking for some smaller ways to add value to the home, LED lighting is a great investment. For about the same price as traditional fixtures, you can attract buyers who are looking for lower maintenance and energy bills.
It can be difficult knowing where to gauge your efforts so it’s not only important to conduct research on the home’s location but also the market in general. According to a study by HGTV, here are the top 15 home updates that can help maximize return value on homes in Norman:
1. Minor Bathroom Remodel (102%)
2. Landscaping (100%)
3. Minor Kitchen Remodel (98.5%)
4. Exterior Improvements (95.5%)
5. Attic Bedroom Conversion (93.5%)
6. Major Bathroom Remodel (93.2%)
7. Major Kitchen Remodel (91%)
8. Deck, Patio or Porch (90.3%)
9. Basement Remodel (90.1%)
10. Replacement Windows (89.6%)
11. Family Room Addition (83%)
12. Bonus Room Updates (72.8%)
13. Living Room Updates (66%)
14. Bedroom Updates (52%)
15. Wall and Flooring Updates (40%)
House flipping isn’t always what you see on TV.
Whether you’re flipping a home for rental or sale, there are always potential risks to consider. However, if you’re strategic in your decisions and stay under budget, you can turn a major profit. To learn more about buying, selling or flipping homes in Norman, reach out to our team today at (405) 310-2796!