There is a lot of money that can be made flipping houses, but there is also a lot of competition. You not only need to have a lot of skill in repairing, refurbishing and upgrading houses, but you also need to do it within a budget. You must be able to use the right materials, and finish the job quickly to get the best return for your efforts. Add to this, you must also be able to buy low and sell high. A real estate agent can increase your chances of success in many ways. The following are three examples.
They can help you find houses
You need to locate a house that will be a profitable flip, but this can take time. But once you communicate the price range and type of house you are looking for, a real estate agent can then begin to search for candidates you can flip. Using an agent for this purpose will not cost you anything. The agent will be making a commission from the seller. They will welcome your business because they will have a possible buyer for any distressed property on the market. However, it is important that the agent knows that you will be using him or her to sell the property after the renovation. This provides extra incentive to make sure you are getting the property you are looking for.
They can help you decide what to upgrade
Although you have skill in renovating a house, it is the real estate agent that knows the local market better. They know what buyers are looking for in a house, what features are selling and which ones are not. Because they are also familiar with the selling prices of houses versus the listing prices, they can let you know which upgrades to a house are worth making and which ones should be skipped to protect the profitability of the flip.
They can help you sell the home
Obviously, real estate agents sell homes, but when you have an agent working for you on a regular basis, they may already have one or more prospective buyers for your house before you are even finished refurbishing it. They know the price point you are shooting for when you are ready to place the home on the market. They are familiar with the neighborhood, and have likely sold several homes there in the past.
The examples above should make it clear how important a good real estate agent can be in the success of house flipping. Ultimately, the best way to take advantage of a real estate agent's skill is to find one you can work with, and try to use the same agent as much as possible. A strong relationship and good communication with a real estate agent is a cornerstone for house flipping success.