There’s no denying the role that TV shows play when it comes to making decisions about your home. Many shows demonstrate how enticing it is to see people turn the worst-looking houses into beautiful properties that people are willing to buy at a higher cost. But the reality is flipping houses is not as easy as you think. Watching TV shows such as Flip or Flop may be quite enjoyable, especially after seeing how much the property changes, and the impact of these changes on property evaluation. But these are heavily edited versions that are completely different from real life. The truth is that there are so many things that you need to know when flipping houses.
Misconception 1: Flipping houses is easy
Thanks to real estate TV shows, people have flocked to the idea that anyone can flip a house: it seems like all that’s needed is a good contractor and a robust contact list. But the reality is that flipping a real estate property is a considerable challenge. For starters, assessing the quality and skill level of your chosen contractor may be more difficult than it appears. Realtor Magazine also adds that the insurance claim adjuster may also not get back to you in time. Incidences like this can delay your project, which can further increase its cost. For example, adding metal fence panels can be an excellent idea, but property owners still need a lot of marketing assistance to ensure that their property sells.
Misconception 2: It requires a minimal budget
TV shows often make it look simple on TV. But the reality is that it takes a considerable budget to complete everything from start to finish. Forbes says that construction timelines aren’t always followed, and that sticking to repair budgets often proves to be complicated.
Taxation is another factor that should also be considered; holding onto a real estate property can leave you prone to long-term capital taxes.
Misconception 3: House flipping is a quick process
Whenever you watch a show on TV, most home improvement gurus make it appear as if they can flip a house in a short amount of time. Although experts can do it within a relatively short time frame, it’s often a different story for industry newbies. Selling a house in an hour rarely happens. Time plays a crucial role in flipping houses. House insurance and interest add up each day that the property is on the market, which could eat into any potential profit.
For those who don’t have the right amount of knowledge and experience, it may take more than two months to complete the project. You need to deal with several factors such as taxes, utilities, and permits to complete the project. In addition, you also need to consider your relationship with your selected contractors, making sure to inspect the selected building materials for your project. That’s why it’s crucial to be realistic about it so that you’ll know what to expect.
Flipping houses can generate money. But it’s not a get rich quick scheme. You need to work with the right contractors to help you complete the project without going over your budget. Being smart with your decisions can be the difference between a quick sale and months wasted on the market.