HICKORY AREA REAL ESTATE UPDATE
The number of foreclosure sales in the area seems to be dwindling a little, as the market share of foreclosures during this period was 11.1% compared to 14.6% for the same period in 2016.
Mortgage interest rates are still good, so now is still an excellent time to make a move. According to Bankrate.com a 30 year fixed rate is 4.16%, while a 15 year rate is 3.37%.
Have you ever considered flipping homes. If so this may be beneficial to you. According to Teresa Mears of money.usnews .com here are 9 secrets of successful flippers
They buy at the right price. If you buy a house at full retail price then spend $25,000 on improvements, clearly you won’t make a profit. You want a house to which you can add value and sell for more than you spend. Especially in today’s market, you may need to search hard for a house that will make a profitable flip. “You make your money when you buy,” Jensen says.
They have access to cash. A traditional lender will want at least 25 percent down and also have the best rate. A hard-money lender, who gives a short-term mortgage based upon the value of the asset, may not care about your credit and will lend enough to buy and rehab, but he or she will charge 10 to 15 percent interest or more. You may get lucky and find a private lender who trusts you enough to give you a loan for acquisition and repair costs at a reasonable rate, but that often takes a track record unless you have relatives with money.
They make accurate cost estimates. Before you decide whether a house will make a good flip, you need to know how much it will cost to repair it, market it and hold onto it during the process, which means you also need an accurate timetable. When you estimate tile costs, don’t just look at the $2-per-square-foot price tag on the tile, but also include the cost of labor, mortar, grout and tools. Don’t forget taxes, insurance, mortgage payments, real estate commissions and marketing costs. “All of a sudden your $10,000 budget is $25,000 in reality,” Jensen says. “It costs a lot of money to flip a house.”
They hire good contractors. Finding a good, reliable contractor to work with you on flipping a house isn’t any easier than finding a contractor to renovate your kitchen. Start looking before you find the house. Ask for references, call those references and look at completed projects. “This is going to be the hardest part of the whole thing,” Jensen says. “I have found three in my whole flipping career who were amazing. I have hired a lot more contractors.”
They buy in the right neighborhoods. When you don’t have a lot of money, the tendency is to assume that an inexpensive house anywhere is a good option. It isn’t. You want a neighborhood that is safe, where values are rising and where people want to live. “Not every house makes a good flip,” Jensen says. “Just because the house is priced low doesn’t mean it’s a good value. You’re not going to be able to force those neighborhoods to be good.”
They do work themselves – when they can do it well. One way to avoid dealing with contractors is to do the repair work yourself. That can be a decent option if you’re good at home repairs. Calculate how quickly you can do the work yourself vs. how much you would have to pay someone else. Your time has value, too. But bad renovations turn off prospective buyers.
They don’t overimprove. If you buy a house in a neighborhood where all the other homes have laminate countertops and linoleum floors, you may not get your money back if you add custom wood cabinets, expensive wood floors and marble countertops. “You don’t want to be the nicest house in the neighborhood,” Jensen says. “You’re not going to sell a $300,000 house in a $175,000 neighborhood.”
They add special touches that don’t cost much. Spend a little more on kitchen faucets, a new doorbell, lighting or plumbing fixtures, Peavey said. Wainscoting, chair rail and crown molding all look nice but don’t cost much. “You sell the sizzle of the steak rather than the nutrients of the steak,” he says.
They sell their homes quickly. Every day the house sits unsold, you lose money. You need a strong marketing plan, whether you use a real estate agent or list it yourself. And you’ve got to price the property to sell based on market values, not what you’ve invested in it for improvements. “If you list too high, the house won’t sell,” Udelson says. “If you list too low, you leave money on the table.
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