Flipping property has been a dream come true for a lot of investors. But when it comes to real estate, buying low and selling high is a venture that takes a lot of careful planning and usually some labor by the investor if it’s to be a profitable investment. There are home flippers in every community in the United States, and their successes and failures are all worth noting if you are considering flipping for the first time. Flipping houses in New Canaan will mean more than just knowing what goes into the flip. To maximize your profits, you’ll want to know the current housing market and forecast for this city, as well as the best methods to get homes to flip. Before you jump into this endeavor, let’s take a look at what the experts are saying.
The current real estate market in New Canaan
The national housing market data has been making headlines a lot lately. The record-high median home prices set in June 2022 began to fall off after interest rates began to soar. But they are on the rise again, with forecasters predicting that last year’s all-time high will soon be surpassed. These factors certainly weigh in on local markets, and New Canaan is no exception.
The median home price in New Canaan is much higher than the national average, and has fallen from its record high set in 2021. But prices seem to be on the rise again here, as the demand for homes is greater than the ready supply.
As a homebuyer who is looking for a place of their own, that data sets certain expectations. But as an investor, it can spell out something completely different.
Before you begin, know what your plans are for the property
The first part of your flipping strategy is to recognize what your plans are for the property long term. Do you intend to rehabilitate the home and rent it out, holding onto it while awaiting the right market to sell? Or do you wish to fix it up and immediately sell it for a profit?
There’s no right or wrong answer to that question. Some investors want rental property, and look for ways to acquire it cheaply. Others are not comfortable with the idea of becoming a landlord, and simply look to get in and out of ownership as soon as possible.
Both tactics have their advantages and disadvantages. Leasing the property to a tenant means that you will be able to sell at potential higher gains, all the while getting income from the unit. But it also makes it more difficult to acquire additional properties if you had to secure a mortgage for the initial one.
An immediate flip will put a lot more cash into your pocket right away than leasing, but fast sales aren’t always a reality.
Discuss the local market in New Canaan with a trusted local real estate agent, to help you get a better idea of what you can expect with either strategy.
Don’t expect an immediate return on your investment
Flipping houses in New Canaan might make you envision fast money. But don’t count on an immediate profit. If your goal is to rehabilitate and sell, be sure you are factoring up to six months of mortgage payments, utilities, insurance, and taxes before the home sells.
Historically, homes in New Canaan have sold far quicker than the scenario outlined above. But markets can change without any notice at all, and being financially prepared to sit on the property while it’s listed is a great strategy.
You’ll save a lot on labor if you can do projects yourself
Evaluate your skill sets before you invest in a home. Some projects you might be able to expertly do on your own. If the home needs mostly cosmetic work, nearly anyone can do that with a little bit of practice. But when it comes to mechanicals, plumbing, and electric, the money you spend on a contractor might be well worth it. This is also important for any structural issues that need to be addressed.
When you are looking for your first home to flip, make a list of everything it will need to be brought up to code and appealing to a renter or a new buyer. Get estimates from contractors for projects you aren’t comfortable doing on your own. Lastly, make sure the numbers all add up to an amount that is far less than what you can reasonably expect to sell the home for later.
A trusted real estate professional will help you in more ways than you might think
Flipping a house in New Canaan will be a lot easier if you allow a real estate agent to guide you. As a lot of the homes that are suitable for flipping are sold off-market, an agent who is networked well will be able to secure you a list of properties that fit your budget and skillset.
The agent will also have a vast network of referrals for contractors that you’ll need to finish the project. And if a fast sale is your goal at the end, an agent’s marketing ability will go a long way in getting you the most for your newly renovated property.
Your next moves
Flipping a house takes a lot of time, energy, and commitment. To get the most out of your investment, teaming with a local realtor that is familiar with the New Cannan housing market is strongly advised. An agent on the Marion Filley Team will be able to immediately go to work for you, and find the best off-market properties suitable for flipping. What’s more, the agents have spent years building a base of solid contractor referrals, so that you can be sure that you have trusted help for projects in your flip should you need them. Consider a consultation with the Marion Filley Team today and take a step closer to your first successful flip.