You get a jump on a new listing that by all appearances, looks like it could be a profitable flip. With a quick trip you are walking through the house and it checks all the boxes to potentially be a great project. The unfinished basement, kitchen that needs updating, hardwood floors that can be refinished…all the things you love to see. Until you look out the window. The neighbors have 4 cars in the rear driveway that don’t look like they have moved in years. The amount of personal debris in the backyard resembles a private dumping ground rather than an area that would see entertaining and grilling in the summer.
Do not ignore this…
The feeling that you have when you see this is the exact feeling a potential buyer will have. When they walk through your stunning renovation, this is the last thing you want. The reality is that no matter how amazing the house is after the transformation, you will not be able to address the neighbors unsightly yard.
When I first began investing, I had people tell me that at certain price points it didn’t matter. I suppose that may be true.
There was a house early in my house flipping where the neighbors had a home daycare along with their own children. Their entire front yard was filled with toys. While not particularily appealing, I didn’t think people would react as negatively as they did. It was a huge issue for buyers. With the items in their front yard, it only makes sense that their backyard was also filled with personal items.
Another house I purchased had a neighbor who had just a few scattered (strange) items in her yard. Since she also had health challenges she told me for months that she was “working on getting her yard cleaned up”. When it came time to list the house I volunteered to clean up her yard. Having experienced feedback from buyers on other homes, I knew that the first impression was important and the time put in was well worth it.
The best tip to avoid all of this is to make sure that you are checking out the neighboring homes. It should be one of the first things on your list when you are doing that first walk through. Knowing the factors that can affect the resale value of your home will help you to make the most profitable decision when it comes time to submit your offer.
So you’ve purchased a house to flip. Now what?
Check out my tips on how to get started when flipping a house.
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