1. Money is made at the buy, not the sell of your flip. When flipping a house your money is made at the purchase not at the sell of the house. So, many times people buy a house with the intensions of making a huge profit only to find out that they could not make any money after all the renovations because the purchased price of the house was to high. When you purchase your property you need to be sure that you buy the house with enough money to make renovations, have carrying cost, and add about 5 $6,000. Now, cost is at $147,000, and that is if everything goes as planned. Profit is under 10,000 dollars. The mistake was made at the purchase at the home, not the sell.
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5 Cheap and 5 Not so Cheap Ways to Green a Client’s Home for Sale:
The Not So Cheap:
5) Install new energy efficient appliances. A typical home’s electricity bill is $100 per month. The EPA estimates that approximately 18% of a home’s energy usage comes from appliances. Installing new energy efficient appliances use 25% less energy then a 10 year old appliance. In more real terms that means a home can save at least $5 a month from installing new energy efficient appliances. For Realtors, you won’t be able to sell your clients on replacing appliances based solely on monthly energy savings, but it can certainly be part of your sales strategy…..in addition to adding to the aesthetic value of the home.
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For many different reasons, most people are eyeing the real estate market right now for potential 2010 purchase. Some people simply want to move their family up to a larger home with less cost, while others are considering going into business flipping houses or taking on additional rental properties.
The year 2010 will bring about many changes in the real estate world. One of the questions you may want to think about is whether or not investing in real estate is a wise decision for you. Here are a few things to consider:
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You’ve done your “find a new city” research. You’ve been online and finally have pinpointed your new place to live. It’s official, your family is moving to Raleigh-Durham. You love the weather and mild climate. There are jobs available and unemployment is much lower than other places. You like the central location on the East Coast. The people are friendly. Some of the best schools in the country are there. People tell you what a family-friendly place Raleigh-Durham is and how much they love living in the “Triangle”.
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Rising construction costs could offer a long-term offset or buffer to the softening real estate market and falling home prices. Housing prices have more than doubled in most regions, but construction costs have risen as well. In many instances material costs have doubled and even tripled, so it may cost twice as much to build that house as compared to what it might have costs ten years ago.
If the median and average selling price of a home continues to decline, then construction of new homes will fall dramatically. Why? Because rising construction costs and falling housing prices will squeeze builder’s gross profit margins forcing them to postpone many future projects.
Subsequently, demand for housing at certain price points which allow builders to earn a reasonable profit will have to catch up with supply before builders resume development. This theoretically would keep the supply of housing in check, thus dampening the possible fall in prices.
This may offer some comfort for those who already own a home and fear how low prices might fall, but it won’t help those who already can not afford to buy a home of their own. Rising construction costs ultimately put a damper on any efforts to provide affordable housing. There are a lot of potential home buyers that might create demand for housing at various lower price points. But the market may never get to those lower price points. Construction costs could just remain too high and other market conditions alone may never create enough affordable housing.
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