There are many ways to make money in the real estate business. With the downturn of 2008 the “distressed” market including foreclosures and short sales has become a great way to make money “flipping” houses for a profit in Naperville. In this approach, an investor buys a house in poor condition at below market, improves the property and offers it for higher price. The following checklist will prove helpful for those considering doing this.
Current Neighborhood Value: Get as much information as possible about the recent sales and current listings in the area of the home you will purchase. Be certain that you are buying at a price that is below similar neighboring homes that have sold within recent months. The asking price of current listings now on the market may indicate what you can expect to receive once you have made improvements.
Cost and Type of Improvements: Get professional help in estimating the cost of the work required to put the house in marketable condition. Ask yourself if the improvements will drastically raise the resale price. Updating the kitchen and bathrooms are typically a great investment. To get this answer, seek the advice of a knowledgeable real estate agent familiar with local home values.
Market Conditions: What will be the conditions of the real estate market when you are ready to offer it for sale? The local economy and interest rates are always subject to change. Because of these uncertainties, improvements should be made as quickly as possible.
