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Chester County PA Real Estate Market Trends for August 2016

Thursday, September 22, 2016
by Scott Darling

homeowner

Being a homeowner means that your home is yours – even the things that need fixing. Is a faucet leaking? Are floor boards squeaky? Is a light-switch not working? Those issues are all yours to tackle. But what projects can you do yourself and what ones require the help of a trained professional? Taking on projects yourself can save you time and money. But taking on the wrong projects can lead to unending amounts of stress or end up costing you more money than if you had hired someone in the first place. NAR’s consumer website, HouseLogic.com, lets you know which projects need a seasoned hand and a beginner can undertake.  

Take a look at how many families decided to become homeowners in our local market in August…

Chester County PA Real Estate Market Trends for August 2016

2,641 Chester County PA single family homes were for sale in August 2016 which is an 8.42% decrease from August 2015. 687 homes sold in August with a median sales price of $351,000, a 8.00% increase from August 2015.

The supply of inventory was 5.0 compared to 5.6 in August 2015 and the Sales vs List Price was 96.3%.

Date Homes For
Sale		 Months Supply
Inventory		 Homes
Sold		 Median Sales
Price		 Sales Price vs
List Price
August 2016 2,641 5.0 687 $351,000 96.3%
August 2015 2,884 5.6 683 $325,000 95.1%

 

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Many Ways to Say Farewell to Your Home

Wednesday, August 17, 2016
by Scott Darling

Your home has sold.

There are many reasons why you might have to leave a home that you have lived in for several years.  You may have had to leave do to not being able to pay the mortgage because it was too high for you or you may have outgrown your home as your family has become larger over the years.  Still another reason you may have to say goodbye to your home is due to a job change that takes you from your home and places you into another area or even another state.  Below are a few ways in which you can say farewell to the place you have come to know and love as your home. 

  1. One way that you can say goodbye to your home that may help everyone feel a bit better about a move is to go around the house room by room and have each family member say aloud why that particular room was important to them and what if anything it meant to them personally. 
  2. Another way you can say goodbye to a home  or rather feel like you are still connected to it years after moving out is by planting a few trees around the house.  If you and your family are blessed enough to be able to come back and visit the home after some time you can watch as the trees begin to grow and see how they change year after year and perhaps still feel a connection to the house.
  3. Yet another clever way to bid farewell to your home is to have someone paint a picture of your home before you leave it.  You can then carry that home with you to your next home and place the picture in a prominent place for all to see.  This is a great way to keep the memory of a beloved home alive for years to come. 
  4. Making a movie of yourself and your family inside of your home before you leave it to travel to your new home is another great way to remember the good times you had there.  If you ever feel like you are missing your “old” home place you can always get the video out and feel connected to it once again.

Homes are not just walls and plaster, they are where we raise our families, where we love and are loved.  Leaving a home is never easy but hopefully these ideas about how to bid farewell to your home  will make it a bit easier for you.  

Courtesy of Chester County PA Realtor Scott Darling.

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Chester County Market Trends Report - January 2016

Wednesday, March 9, 2016
by Scott Darling

Sales were 15.1% higher than in January 2015 while the median sold price was down 0.5% compared to January 2015.

Residential activity in Chester County (Single-family and Condo)


chester county real estate

What's happening in the Local Market?
 

Sales in January were considerably higher than expected, exceeding 2015 by 17%. Additionally, the median sales price was 4% higher than a year ago. The sales price increase is not too surprising since most forecasts were for a 3-4% increase in prices this year over 2015. Of course, one month does not a year make. For February we are projecting about a 10% increase in sales. Pending sales, usually a good indication of sales to come over the next month or two, were 6% ahead of last year in January; that’s in line with the experts expectations of a 3-5% sales increase for 2016. Inventory is beginning to build and it looks like a strong spring market ahead.chester county real estate

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Chester County Market Trends Report - December 2015

Thursday, February 18, 2016
by Scott Darling

Although Sales increased from last month, they were 12.4% below December 2014. The median sold price was down 4% ($12,125) compared to December 2014.

Residential activity in Chester County (Single-family and Condo)


chester county real estate

What's happening in the Local Market?

Just how good was the 2015 housing market? Although there was a slight slowdown in Q4 of 2015, sales were still 6% higher than Q4 2014. The median sold price, however, was unchanged from Q4 2014. Looking ahead to 2016, most national forecasts are for sales increases of 5% and price increases of 4% in 2016.

chester county real estate

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Real Estate Market Trends for Chester County PA - September 2015

Friday, November 20, 2015
by Scott Darling

christmas dog

Moving into a new home during the holidays can be difficult and stressful. There are so many things to plan and prepare when it comes to either event, but to combine the two is extremely difficult. How are you going to celebrate the holidays while you are packing up your home?

If you stay on top of the process you can enjoy the holidays despite your move. Here are some ways you can do both!

  • New Traditions - You might be used to big, homemade meals around the dining room table, but maybe you change it up a bit.  Look for businesses that are open on that day and eat out or order in.  You can have the same sort of meal or you can go completely out of the box. This allows you to pack up your kitchen beforehand so you can enjoy the day more.
  • Create a Move Zone - Keep your jovial, holiday spirit separate from the pile of moving boxes and clutter by creating a moving zone. Put all of your boxes and items that are ready for the move in that room so you keep it out of the way.  
  • Go on Vacation- Pack and prepare your home for the move before the holidays arrive. Get everything ready to go then get out of town. Even if it is just the next town over, it may help your family relax and will allow you to enjoy the holidays without staring at blank walls, empty rooms, and moving boxes.

Take a look at the number of families who were able move and get settled prior to putting the turkey in the oven…
 

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Chester County PA Real Estate Market Trends - June 2015

Thursday, July 30, 2015
by Scott Darling

If you are contemplating putting your house on the market, you may want to see if you have some of the top features home buyers are looking for.

  • A large laundry room is on the list of must-haves for most home buyers these days.  The bigger the better when it comes to laundry rooms. Painting this room a fun color is also a great idea.  If you have not yet updated your washer and dryer it may be a good time to do that as well. 
  • Landscape lighting is a plus if you want your house to stand out above all the others on the market.  Taking a photo of your home at night with all the landscape lighting lit may be a good way to market your home in real estate magazines.  Also if you want to add ambiance to the inside of your house you can add wall lanterns in entrance ways and hallways. 
  • A finished garage is an excellent feature that many home buyers are looking for.  You can add drywall and paint as well as paint the floor of your garage.  You will be amazed at what a difference doing this will make to your home.  Make sure to add a lot of storage areas so that the man of the house will be happy about buying your home. 
  •  An "eat-in" kitchen  is a must have these days.  If you don’t currently have an “eat-in” kitchen, you may want to knock out a wall to make this possible.  It could be the difference of selling your home or not selling your home.  

Take a look at June's real estate sales broken down by school district.

Downingtown School District

The number of homes selling in the Downingtown school district in June 2015 rose by 23.81% when compared to June 2014. The average selling price decreased by 1% to $382,254. The median selling price rose by 3.47%, while the average market time decreased by 4 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
June 2015 130 $382,254 $372,500 42
June 2014 105 $386,067 $360,000 46

 

West Chester School District

The number of homes selling in the West Chester school district in June 2015 increased by 14.38% when compared to June 2014. The average selling price decreased by 2.04% to $384,244. The median selling price increased by 4% while the average market time decreased by 16 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
June 2015 175 $384,244 $364,000 34
June 2014 153 $392,247 $350,000 50

 

Coatesville School District

The number of homes selling in the Coatesville school district in June 2015 the same when compared to June 2014. The average selling price decreased by 5.72% to $231,849. The median selling price decreased 2.39%, while the average market time dropped by 39 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
June 2015 72 $231,849 $225,000 38
June 2014 72 $245,917 $230,500 77

 

Great Valley School District

The number of homes selling in the Great Valley school district in June 2015 increased by 5.88% when compared to June 2014. The average selling price increased 6.53% to $536,846. The median selling price rose by 7.68%, while the average market time decreased by 9 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
June 2015 54 $536,846 $438,500 63
June 2014 51 $503,943 $385,000 24



Unionville School District

The number of homes selling in the Unionville school district in June 2015 increased by 23.53% when compared to June 2014. The average selling price increased 17.51% to $626,192. The median selling decreased 3.6% while the average market time increased by 15 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
June 2015 42 $626,192 $521,250 87
June 2014 34 $532,880 $540,725 51



Tredyffrin-Easttown School District

The number of homes selling in the Tredyffrin-Easttown school district in June 2015 increased 27.87% when compared to June 2014. The average selling price decreased by 18% to $504,793. The median selling price remained the same, while the average market time decreased by 22 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
June 2015 78 $504,793 $475,000 55
June 2014 61 $615,616 $475,000 33

 

Owen J Roberts School District

The number of homes selling in the Owen J Roberts school district in June 2015 increased by 35.42% when compared to June 2014. The average selling price decreased by 5.48% to $387,502. The median selling price dropped by 3.6% while the average market time decreased by 11 days.  

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
June 2015 65 $387,502 $335,000 70
June 2014 48 $409,960 $347,500 81

 

Phoenixville School District

The number of homes selling in the Phoenixville school district in June 2015 increased by 34% when compared to June 2014. The average selling price increased by 2.52% to $292,529. The median selling price rose by 1.2%, while the average market time dropped by 34 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
June 2015 67 $292,529 $253,000 43
June 2014 50 $285,334 $250,000 77

 

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Chester County Market Trends Report for March 2015

Monday, April 27, 2015
by Scott Darling

This is a great time to think about buying home. Home prices and interest rates are still at all-time lows and springtime historically offers the most inventory to choose from. The biggest hurdle for many home buyers is saving money for a down payment. Here are 10 things to do on a regular basis to save money:

  1. Make it automatic. Before you see your paycheck, have a percentage of it automatically deposited into your 401(k) and savings.
  2. Keep minimum funds in checking account. Transfer extra funds into your savings account where it will earn more interest than in our checking account.
  3. Don’t pay banking fees! Use your bank’s free bill pay, automatic deposits, free checks, and free reimbursements for all ATM fees.
  4. Use rewards credit cards. Use a credit card offering cash back on every purchase and pay the card off each month to eliminate interest fees.
  5. Actively search out deals. It never hurts to try and find a better deal, or request a better deal from your service providers.
  6. Drive smoothly. Accelerate smoothly and at a reasonable rate, and coast to a stop as often as possible. Also use cruise control on the highway. My car is rated to get 26 mpg around town and I regularly get 29. You can also use these tips to save money on gas, and use gas rewards credit cards to save money on fuel costs.
  7. Buy quality products. Quality items may cost more up front, but they last longer and generally provide better results than cheaper, inferior products. Examples of items you should buy higher quality - furniture, clothes and shoes, vehicles, and other items that will see a lot of use.
  8. Buy generic where applicable. You can save a lot of money on generic items for which the brand name product is essentially the same as the store brand. Food and medicines come to mind as items where generic products are good deals.
  9. Use coupons and rebates. Use coupons for oil changes, groceries, books, on-line purchases, and just about anything else we can find.
  10. Use store rewards cards. Many grocery stores have their own ‘reward cards’ saving you money each time your shop. If you are a senior, shop on designated senior citizen discount days.

Take a look at March’s real estate sales broken down by school district.

Downingtown School District

The number of homes selling in the Downingtown school district in March 2015 rose by 35.19% when compared to March 2014. The average selling price increased by 2% to $364,865. The median selling price increased by 1.92%, while the average market time increased by 28 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Mar 2015 73 $364,865 $332,000 81
Mar 2014 54 $356,104 $325,750 53

 

West Chester School District

The number of homes selling in the West Chester school district in March​ 2015 decreased by 10.26% when compared to March​ 2014. The average selling price increased by less than 1% to $371,708. The median selling price increased by 4.68% while the average market time increased by 17 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Mar 2015 70 $371,708 $341,250 92
Mar 2014 78 $371,035 $326,000 75

 

Coatesville School District

The number of homes selling in the Coatesville school district in March 2015 increased by 29.73% when compared to March 2014. The average selling price increased 6.53% to $237,735. The median selling price did not change, while the average market time dropped by 2 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Mar 2015 48 $237,735 $225,000 91
Mar 2014 37 $223,156 $225,000 93

 

Great Valley School District

The number of homes selling in the Great Valley school district in March 2015 decreased by 8.33% when compared to March​ 2014. The average selling price decreased 17.05% to $356,543. The median selling price dropped by 11.81% to $317,500, while the average market time decreased by 56 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Mar 2015 22 $356,543 $317,500 72
Mar 2014 24 $429,838 $360,000 128



Unionville School District

The number of homes selling in the Unionville school district in March 2015 increased by 15% when compared to March​ 2014. The average selling price decreased 14.35% to $418,798. The median selling decreased 9.38% while the average market time rose by 3 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Mar 2015 23 $418,798 $435,000 94
Mar 2014 20 $488,937 $480,000 91



Tredyffrin-Easttown School District

The number of homes selling in the Tredyffrin-Easttown school district in March​ 2015 decreased by 25% when compared to March 2014. The average selling price increased by .06% to $428,441. The median selling price dropped by 8.52% while the average market time increased by 1 day.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Mar 2015 27 $428,441 $349,900 63
Mar 2014 36 $428,199 $382,500 62

 

Owen J Roberts School District

The number of homes selling in the Owen J Roberts school district in March 2015 increased by 26.09% when compared to March​ 2014. The average selling price decreased by 4.72% to $333,536. The median selling price decreased by 23.61% while the average market time dropped by 69 days.  

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Mar 2015 29 $333,536 $275,000 70
Mar 2014 23 $350,055 $360,000 139

 

Phoenixville School District

The number of homes selling in the Phoenixville school district in March​ 2015 increased by 62.5% when compared to March 2014. The average selling price decreased 4.4% to $275,037. The median selling price decreased by 10.23%, while the average market time increased by 14 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Mar 2015 39 $275,037 $250,000 101
Mar 2014 24 $287,687 $278,500 87

 

Curious about the value of your home? Get your home's value here!

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Chester County Real Estate Market Trends for February 2015

Sunday, March 29, 2015
by Scott Darling

Take a look at February​’s real estate sales broken down by school district.

Downingtown School District

The number of homes selling in the Downingtown school district in February 2015 dropped by 23.26% when compared to February 2014. The average selling price decreased by 4% to $368,749. The median selling price dropped by 10.95% while the average market time decreased by 8 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Feb 2015 33 $368,479 $305,000 63
Feb 2014 43 $382,272 $342,500 71

 

West Chester School District

The number of homes selling in the West Chester school district in February​ 2015 decreased by 3.7% when compared to February​ 2014. The average selling price increased by less than 1% to $329,940. The median selling price increased by 2.08% while the average market time increased by 13 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Feb 2015 52 $329,940 $295,000 70
Feb 2014 54 $328,245 $289,000 57

 

Coatesville School District

The number of homes selling in the Coatesville school district in February 2015 increased by 26.67% when compared to February​ 2014. The average selling price decreased 2.23% to $222,607. The median selling price decreased 4.2% while the average market time grew by 2 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Feb 2015 38 $222,607 $216,500 97
Feb 2014 30 $227,679 $226,000 95

 

Great Valley School District

The number of homes selling in the Great Valley school district in February 2015 increased by 18.18% when compared to February​ 2014. The average selling price decreased less than 1% to $497,492. The median selling price dropped by 15.58% to $369,450, while the average market time decreased by 12 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Feb 2015 26 $497,492 $369,450 53
Feb 2014 22 $501,952 $437,625 65



Unionville School District

The number of homes selling in the Unionville school district in February 2015 increased by 50% when compared to February​ 2014. The average selling price increased 5.72% to $451,083. The median selling decreased 2.52% while the average market time dropped by 45 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Feb 2015 15 $451,083 $327,500 67
Feb 2014 10 $426,680 $335,950 112



Tredyffrin-Easttown School District

The number of homes selling in the Tredyffrin-Easttown school district in February​ 2015 increased by 20.83% when compared to February​ 2014. The average selling price decreased by 9.54% to $496,004. The median selling price rose less than 1% while the average market time increased by 12 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Feb 2015 29 $496,004 $450,000 79
Feb 2014 24 $548,323 $447,500 67

 

Owen J Roberts School District

The number of homes selling in the Owen J Roberts school district in February 2015 increased by 53.85% when compared to February​ 2014. The average selling price increased by 20.73% to $385,152. The median selling price increased 49.79% while the average market time decreased by 9 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Feb 2015 20 $385,152 $362,500 96
Feb 2014 13 $319,008 $242,0000 87

 

Phoenixville School District

The number of homes selling in the Phoenixville school district in February​ 2015 decreased by 28.57% when compared to February​ 2014. The average selling price decreased 8.49% to $261,651. The median selling price increased by 4.45% while the average market time decreased by 35 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Feb 2015 15 $261,651 $272,500 58
Feb 2014 21 $285,937 $260,900 93

 

Curious about the value of your home? Get your home's value here!

Information provided by Chester County Realtor Scott Darling.

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Chester County Real Estate Market Trends for January 2015

Wednesday, March 4, 2015
by Scott Darling

Even though most people start their New Year’s resolutions on January 1, some people add resolutions as the year progresses. For some, that goal is realizing the dream of homeownership. Beginning the process of buying a home can be daunting, but it is easy enough to begin working on the first step – saving for a down payment. According to the National Association of REALTORS®' 2014 Profile of Home Buyers and Sellers, 65 percent of home buyers utilize their savings account for a down payment; however, buyers find many other ways to finance a down payment, including selling stocks or bonds, relying on gifts from friends or relatives, retirement funds or using the proceeds from another home sale.

Beginning to build savings should be a priority for potential buyers because it can take some time. According to NAR’s report, it took half of buyers a year or less to save for a down payment, while another 19 percent said it took between one and two years to build their savings account. Additionally, 29 percent said they needed more than two years to save.

Take a look at January’s real estate sales broken down by school district.

Downingtown School District

The number of homes selling in the Downingtown school district in January 2015 dropped by 1.85% when compared to January 2014. The average selling price increased less than 1% to $355,000. The median selling price increased by 2.94% while the average market time increased by 15 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Jan 2015 53 $355,000 $350,000 66
Jan 2014 54 $354,439 $340,000 51

 

West Chester School District

The number of homes selling in the West Chester school district in January 2015 decreased by 15.71% when compared to January 2014. The average selling price increased by 1.05% to $347,531. The median selling price decreased by 2.88% while the average market time increased by 7 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Jan 2015 59 $347,531 $320,000 66
Jan 2014 70 $343,909 $329,500 59

 

Coatesville School District

The number of homes selling in the Coatesville school district in January 2015 dropped by 7.5% when compared to January 2014. The average selling price increased 3.51% to $223,125. The median selling price decreased 6.6% while the average market time grew by 14 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Jan 2015 37 $223,125 $200,875 102
Jan 2014 40 $215,565 $215,069 88

 

Great Valley School District

The number of homes selling in the Great Valley school district in January 2015 decreased by 19.05% when compared to January 2014. The average selling price increased 8.1% to $474,719. The median selling price increased by 7.9% to $437,000, while the average market time decreased by 19 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Jan 2015 17 $474,719 $437,000 64
Jan 2014 21 $439,151 $405,000 83



Unionville School District

The number of homes selling in the Unionville school district in January 2015 increased by 41.67% when compared to January 2014. The average selling price increased 19.76% to $499,500. The median selling rose 37.4% while the average market time increased by 47 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Jan 2015 17 $499,500 $450,000 115
Jan 2014 12 $417,083 $327,500 68



Tredyffrin-Easttown School District

The number of homes selling in the Tredyffrin-Easttown school district in January 2015 increased by 7.69% when compared to January 2014. The average selling price increased 2.16% to $435,893. The median selling price dropped 5.59% while the average market time increased by 10 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Jan 2015 28 $435,893 $380,000 58
Jan 2014 26 $426,673 $402,500 48

 

Owen J Roberts School District

The number of homes selling in the Owen J Roberts school district in January 2015 increased by 5.26% when compared to January 2014. The average selling price decreased by 4.72% to $308,095. The median selling price dropped 10% while the average market time decreased by 1 day.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Jan 2015 20 $308,095 $256,500 116
Jan 2014 19 $323,373 $285,000 117

 

Phoenixville School District

The number of homes selling in the Phoenixville school district in January 2015 decreased by 21.21% when compared to January 2014. The average selling price increased 2.74% to $279,169. The median selling price increased by 14.19% while the average market time decreased by 5 days.

Date Sold
Listings

Average
Selling Price

 Median
Selling Price		 Average
Days On Market
Jan 2015 26 $279,169 $244,375 64
Jan 2014 33 $271,718 $214,000 69

Curious about the value of your home? Get your home's value here!

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Real Estate Flipping 101

Thursday, January 29, 2015
by Scott Darling

If you watch home-and-garden cable channels, it looks like everyone is flipping houses. i.e. buying a piece of real estate, making minor repairs, and quickly selling it at a substantially higher price.  Basic investing 101: Buy low, sell high.

real estate flippingCertainly sounds appealing--and you may be tempted to join the ranks of those who have been successful in this field.  Be forewarned, however, that like most money-making endeavors, real estate flipping requires time, money, patience and skill.

For tips on how to begin, steps to follow, and advice on how to avoid pitfalls, read on…

Do your research and be knowledgeable well in advance:

  • Talk to (and learn from) successful flippers, read up on the subject, follow real estate deals in the newspaper, use the Internet as a teaching resource, attend open houses and auctions.
  • Identify possible house locations, size, and style.  Educate yourself on how to recognize promising properties and how to spot a lemon.
  • Familiarize yourself with current prices, taxes, utility rates, HOA fees, municipal and restrictions in each area you are considering.   Study your market. Get to know it as well as you possibly can. Understand the trends, the kinds of houses, the neighborhoods, the streets
  • Visit the potential homes and neighborhoods in person.  Talk to residents, Realtors, and repair companies who are familiar with the area.

Set up a budget, a time line, and financing:

  • Figure out how much money you have (or can put your hands on using investors) without borrowing
  • Calculate the cost of repairs, taxes, utilities, materials, contractor/labor expenses, and the like.  Professional contractors advise flippers to add an extra 10% to their repair estimate.  Also, to be on the safe side, make sure that you’ll be able to hold on to the home as a rental property for a while, if need be.
  • Experts suggest factoring in the flip time into your budget and your potential profit before you purchase the home. According to investors, a successful flip is one that makes you around a 15% profit.

Be prepared:

  • When you find the right house, you must act quickly to buy it.
  • Have appraisers, agents, contractors, skilled laborers lined up so they can start work immediately upon your purchase.  Remember, in flipping, time is money!
  • Be ready to make quick decisions, devote a great deal of time (and possibly sweat equity) to this project, and face unexpected expenses.

Information courtesy of Chester County Real Estate Expert Scott Darling.

 

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