“Property assessments in Knox County are on the rise with a 10 or 11 percent average increase in the last four years,” said a news report on WBIR.COM on April 13. 2017. In fact, according to Knox County Property Assessor, John Whitehead, “The real estate market in Knoxville has really begun to take off in Knox County, and that’s commercial and residential.” Rising property assessments is always a good sign that the real estate market is well on its way to a recovery. However, the problem in Knoxville remains the low levels of inventory, compared to the number of people who want to buy. On the other hand, all this is good news if you are wanting to try your hand as house flipping. Yes, according to a recent report on CNBC, flipping is making a big comeback in the US, and with demand expected to continue to outstrip supply in 2017, this could be a good time to make some profits on real estate. Most experts also predict that home values will continue to rise in 2017, so the sooner you get into the game, the better it might be.
If you are a first timer, here are some tips that could help. Also, if you are new to Knoxville, it will be useful to use the services of an experienced realtor, who will definitely know the legalities, ways to increase the home value for sale and more.
Making the Most of Flipping Homes
Here are the four most important tips to making a profitable flip:
Determine your Budget: When you flip a home, you are not only buying the house, you also need to factor in some renovation and repair to increase the value of the property. So, the first step is to ensure that you have a budget that takes into account unforeseen contingencies as well. The next most important thing to do is to stick to this budget, regardless of how much temptation you face!
- Establish a Timeline: As they say, time is money! So, make sure you estimate the time it will take to get the home ready for sale and by what time you wish to make the sale. This might also mean that you find out what the best time to sell would be in the specific area. If there is major work to be done, such as flooring or rewiring, etc., you need to determine the timeline based on all this as well. If the work is taking too long, think about getting the most essential repairs done and let the new buyer take care of the smaller jobs.
Have Multiple Exit Strategies: While you might be looking forward to flipping, the vagaries of the real estate market mean that you should have other options available as well, just in case. The main aim is to ensure that you do not lose money on a deal, don’t hold on to the property for too long, which will keep your money tied up, and if possible, make some money as well. For instance, if things are not going your way, you could consider selling the property for the amount you paid for it to another investor and get out well in time.
- Staging: This is a very important part of selling a home. The more attractive the house is, the greater the likelihood that you will be able to sell it soon. The bottom line is that a well-staged home could fetch you more too. So, create that inviting ambience, the warmth of a home, highlighting the comfort and the security of the place.
According to figures released by the National Association of Realtors in October 2016, Knoxville, TN, was ranked #7 among the top 10 best cities for home flippers in the US, with a ratio of flips to all home sales at 2.8% and median flip profit of $58,450. So, if you are looking to make money out of real estate, this is one city that should be on your list.