Over the last year or so there has been a huge increase in foreclosure homes up for sale. It seems like everyone wants to jump into flipping homes, thanks to HGTV and many other networks. The network makes it look so easy: Purchase the home and take a hammer to all the walls and kitchen by destroying everything in your path. Then, go to your local home store and start purchasing replacement items and doing it yourself, put it on the market and make a huge PROFIT. Don’t get me wrong there are a lot of things you can do in a home even if you are not an experienced handy man or licensed contractor. However some items should be left for the professionals. One thing they don’t always mention is the little cost here and there that adds up to a LOT of money. I know firsthand.
My husband and I purchased a foreclosure home over three years ago and got a steal. We wanted to flip the house and move to the next. Little did I know, I wouldn’t want to sell. We picked out everything we could ever want in a home, making it amazingly perfect. After consideration there was no reason to move. We would not be able find this nice of a home in such a good area for the same price, plus it has almost everything we would ever need. To this day we are still working on our home.... it's a never ending project. We are still throwing money at it. Even though we got a deal to begin with, we would probably break even with the current neighborhood values if we sold our home.
Foreclosures have been a big hit and will continue to be, everyone wants a good deal. I hear buyers all the time saying they want to buy a foreclosure. When I think about my experience I like to tell people: you may get a good deal now, but the amount you will have to spend to get it where it needs to be, you may just breakeven or lose money. The reason the foreclosures are cheap is because they usually need work- hints the discount in price from other homes in the neighborhood. There are some REALLY good deals out there and buyers/investors can flip homes and make money, you just have to know what you are doing and be smart about the changes you make. Don’t add personal preferences, the home should be neutral and appeal to almost everyone for a quick sale. If you get into flipping homes I recommend staging the home, people like to imagine their furniture and get ideas of where their stuff would fit. Staging will help agents market the property and help with the overall appeal of photos.
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