Las Vegas has been hit with lots of foreclosures since 2008.
A September 2010 report from Realty Trac says that one out of every 61 homes in Las Vegas, Nevada, received a foreclosure notice in that month. This influx of foreclosures in the central Las Vegas area and surrounding suburbs adds more inventory to the bank-owned homes already listed for sale on the local market. The wide variety gives willing buyers and investors lots to choose from when it comes to bank-owned homes market at low prices. Does this Spark an idea?
Instructions
1. Hire an independent home inspector to evaluate the property's foundation, structure, and plumbing and electrical systems. A licensed inspection often reveals problems lurking underneath a home's surface that a cosmetic repair would not be able to hide. These inspections also ensure that a property is up to current building code, meaning you need to make fewer repairs before you can sell the property. Knowing the budget for repairs makes a big impact on profits if you plan to flip the property.
2. Make a list of problems from the home inspection that need to be addressed quickly. Triage items based on the habitability of the home. For example, a broken water heater is much more important to repair than a squeaky door hinge. Focus on major items like electricity, water and sewer, and then move on to the cosmetics. Purchase a home service plan if it makes sense financially; these plans can help you coordinate repairs -- in exchange for the plan's fee, you only have to pay a low-cost deductible for each visit, rather than paying for the entire repair. Don't sign up for a plan if the cost of the plan and the deductibles exceed the cost for you to make the repairs yourself.
3. Make a list of cosmetic items in need of repair or replacing. The most effective way to fix up a Las Vegas home to flip is to visit local builder model homes, as they reflect the most current wants and trends of the area. Take note of paint colors, kitchen appliances and counters, entry doors, bedroom doors, flooring and light fixtures to compare against the bank-owned home you've purchased. Assemble a list of upgrades based on your research. Spend a solid amount of time upgrading and updating the kitchen; these upgrades are important selling points in Las Vegas and in the rest of the U.S.
4. Change out items such as doorknobs, switch plates, toilet seats and ceiling fans; it is amazing how quickly small details like these will sell a house. An article on Front Door suggests that updating these items can make a big difference to potential buyers.
5. Give buyers a reason to come in. Curb appeal, or lack of it, is a primary reason a buyer will either stop in to see a property or drive on by. Create a welcoming entrance by sprucing up landscaping outside, trimming grass and bushes and power washing the exterior of the property, the driveway and surrounding walkways to attract potential buyers.
Tags: bank-owned homes, Make list, potential buyers
