The real estate market in South Carolina is currently looking good for those looking to sell their property. With the state currently featuring a seller’s market, cities like Spartanburg have a huge demand for properties. If you’re looking to diversify your real estate investment, house flipping can be a profitable path.
However, like any investment, there comes a certain amount of risk. That’s why it’s important to know as much as you can about house flipping in the area before you deep dive into it and buy your first house. Here’s what to know if you’re planning on house flipping in Spartanburg or any city in South Carolina.
What Is House Flipping?
In a nutshell, house flipping is when you buy cheap residential property, make repairs and renovations on the house, and then put it back on the market for a higher price. The idea comes from you “flipping” a house into a much more appealing property in as little time as possible.
This is a legitimate investment opportunity, though it comes with its own pros and cons. On one hand, you could find a diamond in the rough sold at a low price that can fetch a much higher price with minimal renovations, increasing your profit in the process. On the other hand, it’s not as easy as many reality shows make it out to be: one bad buy, and you could be facing a significant loss and be stuck with a house you don’t really want.
While the demand for residential properties is relatively high in South Carolina, that does not necessarily mean all houses have the same number of prospective buyers. When looking at potential houses to flip, keep in mind if there is a particular demographic that would be interested in the property after you’ve flipped it.
For instance, homes close to the bustling city center will be great for young professionals. Homes in good school districts are ideal for families. And homes in quiet neighborhoods are a magnet for retirees looking for a place to settle down.
Evaluate The Price Against Potential Profit
One of the biggest risks in house flipping is when you purchase a house that costs more to repair than how much you can profit from it once flipped. As a result, even if you do manage to sell the house to a buyer, your profit may not be worth it (or even worse: selling at a net loss).
This is why it’s important to evaluate a potential house and see how much repair is needed. Let’s say there are two houses in the market that you could flip: House A is the more expensive of the two, but all it needs is a few house renovations to update things like wall color, bathroom fixtures, and kitchen counters and cabinets; and House B, which is much cheaper but has problems in the foundation, plumbing, mold, and wiring.
If looking at it at a glance, you’ll see that House B is cheaper than House A. But when you consider the repair and renovation costs, House A is less likely to eat at your profit. Whereas House B can still be sold, but you might have a hard time finding buyers willing to pay your asking price when they’ll be responsible for fixing the damage.
Refer To A Professional Home Buyer
Just because the market is saturated with buyers does not mean selling a flipped house will be quick and easy. If all else fails and you find that there are no takers for your property, you still have one option: selling your home to us! We buy houses in Spartanburg and throughout South Carolina.
A professional home buyer is a company that offers to buy your home at a fair price. Unlike other buyers in the market who buy houses in good and pristine condition, professional home buyers buy homes that are sold as-is, even if the house has not yet undergone the repairs and renovations most buyers expect from the houses they consider.
At Sell My House Fast, we consider houses of all states. We offer homeowners a good price on their homes sold as-is. Even for those flipping houses, selling to professional home buyers is a plus because it reduces the costs you need to shoulder to earn a profit.
Contact us today to sell your house.