Craven Academy: Real Estate

The first things that you need to deal with when flipping a house are the basic systems. Homebuyers have certain expectations of any property that they are considering. They expect that the plumbing works, the electrical system meets an acceptable standard, the heat works and the roof is adequate. If these basic expectations are not met, then they will usually pass on the house or expect to pay a lot less for it. A lender will also expect that these items meet a sufficient standard in order to approve a mortgage on the property.

If the roof needs minor repairs do not hesitate to do them. If the roof is in poor condition, then it needs to be replaced. You need to check your local building code to see if you can re-roof over the existing shingles or if the old roof needs to be removed. While a new roof may not add a lot to the value of a property, a bad roof can make it extremely difficult to sell. If the roof is in very poor condition the buyers may have difficulty obtaining a mortgage.

The electrical system should be upgraded if necessary. Most older homes were not designed to handle the needs of today's appliances. Upgrading the electrical panel to higher amperage is usually sufficient. In some cases it may be necessary to add additional outlets and fixtures, but it is rare for a house to need to be completely rewired.