Growing up I’ll never forget the creepy dilapidated house down the block, the one where the imaginary witch lived, the one we told ghost stories about. I never thought anyone would actually buy that vacant rundown home, but someone did and soon it became one of the nicest homes in the neighborhood.
That was my first encounter of a “flip” and at the time it sounded pretty easy; buy a home dirt cheap, remodel a few things and become a millionaire, but it’s not that easy. In fact many “flips” can easily turn into “flops” because mistakes are made, usually avoidable ones.
So what are the biggest mistakes Wellington home flippers make? Below is a list of the most common flipping mistakes I’ve witnessed and in most cases these Wellington flippers don’t just make one of these mistakes they make several, which can easily cause their flip to flop.
Biggest Flipping Mistakes:
Choosing the Wrong Wellington Home to Flip:
Some Wellington home flippers are doomed from the very start by choosing the wrong home to flip. While location and layout of a home are very important the market conditions are even more important. Knowing the comparables and purchasing a home for the right price is key when flipping a home in Wellington.
Not Pulling Permits:
I’ve recently seen a few flips in Wellington that had a new roof, but a permit wasn’t pulled. Prior to starting a flip Wellington flippers need to know what improvements require a permit, which ones do not and plan accordingly. In addition to pulling permits the Village of Wellington and/or homeowners association may require approval for certain improvements as well, such as new exterior house color.
Skipping the Details:
While a Wellington home buyer may fall in love with that brand new kitchen they will not overlook the 1980’s brass fan with wood panels or those aluminum blinds. When the little details are skipped, especially fairly inexpensive ones, it tends to scream “the money ran out” and the appeal of a renovated home can be lost. In my experience some Wellington home buyers can look past these little details, but others may start to question whether or not other corners were cut to save money and lose interest in the property all together.
Selecting the Wrong Finishes:
It is imperative for Wellington flippers to know the types of finishes home buyers are looking for and make sure they don’t under improve or over improve the home. I recently showed a flip that featured a brand new kitchen, but unfortunately the 32″ oak cabinetry did not scream “Brand New,” instead it felt very dated.
Over improving a home is probably the biggest mistake Wellington flippers make, but this type of mistake is usually only made by inexperienced home flippers. This is where market knowledge and choosing the right property and improvements will make or break a flip. Often times inexperienced flippers will let their personal taste get in the way and start demolishing perfectly good tile floors or cabinetry and replacing it with something just as nice or too nice, which cuts into their profit.
Over Pricing the Home to Make a Certain Profit:
Another big mistake Wellington home flippers make is over pricing the property so they can net a certain amount. Wellington home buyers usually do not care how much a flipper spent on improvements, how much it will cost to sell or how much they want to net. Buyers care about market value and while some might be willing to overpay in my experience a majority will not go much above market value.
Are you thinking about flipping a home in Wellington Florida? Put my experience to work for you and let me guide you through the process!