In spite of the slow-moving housing demands and strict mortgage, investors are looking for ways to earn money by flipping houses for younger buyers. By flipping houses, they mean they are grooming foreclosed or distressed houses for re-sale. This may seem like a lot of work but investors are raking in profits with this strategy, because with just a little bit of fixing up, they are able to justify the high cost of the properties.
Investors buy properties that are foreclosed, trustee sales, short sales and even badly beaten-up standard sales that no one wants to purchase; then, they do some rebuilding for re-selling. Investors look for potential buyers through listings and they sometimes base their renovations and purchases based on the requirements of the buyers. Investors see the potential of these distressed properties that home buyers sometimes don’t.
The prospective buyers of these investment properties tend to be young homebuyers who are seeking their first home. Many of the properties are not located in a first-class suburban neighborhood, but they are near schools, restaurants, entertainment, offices and other popular establishments. These homes are often located in older neighborhoods that are transitioning upward. An example in Middle Tennessee would be East Nashville.
The target buyers of these investors are those who want a house that is good-looking with a price that is lower than those that are located in prime subdivisions. They are the buyers who are just starting a new chapter in their life, and can adapt to the changing environment in the neighborhood. They tend to be willing to grow with the neighborhood.
To be able to get a sure sale from home buyers, investors and sellers need to consider these factors:
- Decluttering. This means removing things that are not attractive to a potential buyer.
- Painting. Light colors are recommended, such as beige, cream, gray or tan.
- Remove old carpet. A polished floor or fresh carpet is very noticeable for potential buyers.
- Scale furniture correctly. Make sure that big furniture does not make the space look small. Properly place the furniture where they should best fit. In this case, a home stager can be a huge help.