To Flip or Not to Flip

You may be in the market for one of the many sales in The Hills, Bedminster, NJ, but not because you are going to live there. Flipping has become quite popular over the last few years, especially with the emergence of HGTV and other home improvement television channels. Some people get roped into flipping by the promise of a big payday, but flipping involves much more than a few renovations. It involves a great deal of patience, skill, and business sense.

If you are thinking about flipping a New Jersey home, you may want to consider a few important factors before you get involved in the process. First, you will need to establish a realistic budget. Many first time “flippers” get into financial trouble because they are unable to stick to a budget. When you create a budget for your flip, factor in any unforeseen complications as well. That way if you discover a leak in the basement or a termite problem under the porch, you will be able to afford to have it fixed without going over your budget. You should also determine whether or not to partner up with someone who has more experience than you. You can then combine your funding and work together instead of taking on the entire project by yourself. An experienced flipper can also teach you the “ins” and “outs” of the flipping process. Sometimes, it’s better to learn from someone before embarking on a project all by yourself.

Make sure that you have a list of reliable and reputable contractors who can give you reasonable estimates for the renovations and complete the renovations on time. If you can get a contractor through a referral from a family member or a friend, do so. You don’t want to waste time and money on a contractor who isn’t reliable and who makes mistakes. You will most likely end up having to pay another contractor to come in and fix the mistake, which will cost you even more money. Many first-time flippers fall into this trap.

As a flipper, it’s extremely important not to get attached to the home. Remember, you are not going to be living in the home, so you need to make decisions based on the wants and needs of potential buyers. For example, you may want to paint the entire house red but not everyone likes the color red. You will be better off painting the entire house a neutral color that is more appealing. These decisions will impact the sale of your flip and should be taken seriously. Be realistic about the final price of the home as well. You may feel that the home is worth much more than it really is because of all of the time, work, energy and money that you put into it. Only an experienced real estate agent can advise you on a realistic price. You don’t want to carry the mortgage any longer than you have to, especially if you are already paying a mortgage for your own home. Price the New Jersey home right, and it will sell much faster.