The New York residential real estate market is highly-competitive. There are often more buyers than properties, especially when looking at reasonably-priced single-family homes. It is a difficult time for those who want to own their own homes and also for those who make their money by investing in real estate because of the competition and recent increase in interest rates.
Flipping properties typically requires careful planning for someone to maximize their profits. Some people are able to successfully flip properties even when prices are high and markets are unpredictable. These investors make careful decisions about what properties they buy, what work they do and how they list the homes they flip.
What considerations may influence someone’s likelihood of success when buying properties for resale in New York?
The likely future price of the property
Every home in need of repairs sells for a price that reflects its condition. Competitive markets often lead to unreasonable prices and shrinking profit margins for those intending to fix up properties and resell them for more money. Inflation and high interest rates may significantly diminish the returns on someone’s real estate project, which means making an offer that focuses on what it will cost to repair and what it will command when re-listed is key.
Increased buyer skepticism
Numerous television shows focused on high-return property flipping have led to more competition for investment properties and also to more skepticism from buyers. People are more likely now than ever before to look at how recently someone purchased the property and how much more they want when reselling it. Those flipping a home can potentially encourage buyers to make a reasonable offer through more transparency. Making comprehensive lists of the repairs and improvements they have made to the property can help demonstrate the value added during their brief ownership.
The right paperwork can protect people at every stage of an investment real estate transaction, from the process of making offers on properties in questionable condition to the process of selling a home after only owning it for a few months. Seeking legal guidance to address some of the more serious issues that could complicate residential real estate transactions can help those who are hoping to flip a property decrease the stress involved in the process and potentially increase their profit margins.