Oct 03, 2022 - 10m read
How Long Does it Take to Flip a House?
Over the past 20 years, house flipping has become increasingly popular as a real estate investment strategy. House flipping begins by purchasing a home that’s not in great condition and might be undervalued. Once the investment goes through, renovations take place to substantially increase the value of the property in question.
Anthony Reinoehl
Co-Founder
Over the past 20 years, house flipping has become increasingly popular as a real estate investment strategy. House flipping begins by purchasing a home that’s not in great condition and might be undervalued. Once the investment goes through, renovations take place to substantially increase the value of the property in question.
The right renovations can add tens of thousands of dollars to the value of a home, which positions house flipping as a potentially lucrative strategy. Keep in mind that flipping a house isn’t easy. It’s important that the process is completed without too many delays, which requires you to know what you’re doing.
Even if you already have a personal home that you’ve lived in for years, it’s possible to implement the same techniques to improve the value of your home and flip it for sizable profits. Among the most common questions that prospective house flippers ask is how long it takes to flip a home. While there is a general timeline for this process that can be helpful, the timeline for flipping an investment home differs with each project. This guide takes a step-by-step look at how long the house-flipping process takes.
How House Flipping Works
House flipping is a process that occurs when buyers or investors purchase distressed properties before fixing them and reselling them at a higher price than they were bought for. The types of properties that most people search for when flipping houses are found at property auctions, foreclosures, and bank short sales.
Obtaining success in house flipping requires that you invest wisely in properties that are currently undervalued and need some work done. You can then perform various renovations to increase the property value and appeal to potential buyers. After the renovations have been completed, you should be ready to list the home and start marketing your property.
Micro-flipping
Micro-flipping is a type of house flipping that you might be interested in. With this solution, you can purchase and sell properties with relatively limited renovations. If you want to flip a home quickly and aren’t looking to perform extensive renovations, micro-flipping may be right for you. Before you begin the micro-flipping process, make sure that you analyze ample amounts of data to identify the best opportunities in the existing market.
If you can find a property that’s priced somewhat below market value but isn’t necessarily in poor condition, this may be the exact type of property you’re looking for. The main goal when performing micro-flipping is to complete the process quickly. If you can flip a high volume of homes in a short period of time, your profits should be higher.
How Long Does it Take to Flip a House?
The timeline for flipping a home is relatively straightforward since the process can be completed in three steps.
Buying the Property: 5-10 Days
The initial step in this process involves buying the property if you don’t already have one, which should take you around 5-10 days at least. It’s possible that finding the right property could take you a few weeks depending on the health of the real estate market. In the event that you purchase a property through an auction or with the help of a realtor, this timeline could be much longer.
The most efficient method of obtaining a home for your house-flipping strategy is to purchase the home from a wholesaler. There are many firms that provide off-market properties that aren’t readily available to the wider public. This option should also help you avoid a competitive market and bidding wars at an auction. Keep in mind that you may need to apply for a hard money loan to invest in this type of property.
Renovation: 45-90 Days
The next step in this process is arguably the most important. During this stage, you’ll be tasked with performing various renovations that will increase the property value and allow you to obtain a profit once you decide to flip the home. If you want this process to be completed in a relatively efficient manner, it’s highly recommended that you focus on putting an organized crew together that can implement the renovations according to a structured timeline.
If you hire the right team, you shouldn’t experience any notable delays during the renovation process. Keep in mind that the renovation phase of the house-flipping process is the most time-consuming one. Anything you can do to save time during renovations should also help you reduce renovation costs.
If you want to properly estimate the amount of time your renovations will take, you’ll first be tasked with identifying the types of work that must be done. First, make sure you determine what the difference between your purchase price and the possible selling price will be. Once these prices have been set, you can select the renovations that will allow you to increase the value of the home you’re about to sell. It also gives you a good idea of how much you can spend on renovations.
Before purchasing the home that you’re interested in, consider obtaining a home inspection, which should help you avoid any frustrating surprises. While a home inspection will cost you several hundred dollars, it could save you from putting money into a property that will cost you tens of thousands in repairs.
Once the budget has been set and any issues have been identified, it’s time to decide what improvements you’re going to make to the home. Consider focusing on the improvements that will provide you with the highest returns. It’s also highly recommended that you avoid installing too many luxury features. While these features can appeal to potential buyers, they are very costly, which means that your returns may not outweigh the costs.
You should also think about making numerous small changes and upgrades to the home that will increase the property value without asking you to spend too much money. A fresh coat of paint or some new landscaping can do wonders for a home while also costing very little. Once you’ve determined what updates you’re going to make, you should be able to obtain timelines and cost estimates from contractors. This stage of the house-flipping process usually takes around 45-60 days.
Selling the Property: 45 Days-6 Months
Once all of the necessary renovations have been completed, it’s time to list your home for sale, which can be a lengthy process. In the event that you list your home for sale on the MLS, the listing can be placed for a period of 6-12 months. The market is currently tilted towards being more advantageous for sellers, which means that you should receive an offer on the home in a short period of time.
Once you’ve accepted an offer, you’ll still need to enter escrow with the buyer in question. The time it takes for a real estate transaction to close is anywhere from 21-45 days. If all aspects of the closing process go according to plan, you may be able to complete the sale of the home in 45 days. However, it’s possible for this process to take as much as six months.
House Flipping Pitfalls and Solutions
While house-flipping is an investment strategy that could help you bring in high profits, there are also some common pitfalls that you should do your best to avoid. One pitfall that’s difficult to recover from is making too many high-end changes to the home. As mentioned previously, paying too much on luxury renovations could put you in a situation where the value of the home doesn’t increase enough to cover the initial costs of the renovations.
You can avoid this issue by implementing renovations that are highly sought after while also being relatively affordable and economical. For instance, new homeowners are very interested in updated kitchen cabinets. However, these cabinets don’t need to be made from the most premium materials to satisfy potential buyers.
Many investors will also make the mistake of not getting an inspection. If you don’t order an inspection on the home you wish to buy, it could end up having major structural and foundation issues that are almost impossible to repair. Obtaining an inspection beforehand is an important aspect of your due diligence.
At CC Capital, you can avoid most of the mistakes and pitfalls of the house-flipping process by selling your renovated home with us. By contacting us once the home has been renovated, we can provide you with an offer in a matter of days and complete the entire transaction in two weeks or less.
Marketing the Property
If you want to place your home on the market, you’ll need to market the property correctly to ensure that potential buyers see it. In fact, the marketing you perform is almost as important as the renovations you implement. If you don’t bring in prospective buyers, your entire project could fail. If you want your marketing efforts to succeed, consider hiring a real estate agent. These professionals have the experience necessary to properly market your home for you.
The property should also be listed on the most popular real estate websites to achieve high visibility. Websites like Trulia and Zillow are a must. The final marketing tip to consider involves staging your home well, which is necessary if you want potential buyers to become more interested in your home after taking a tour. Make sure that there aren’t too many personal items around your home.
Selling to CC Capital
You can avoid all of the previous steps and pitfalls by selling your home to CC Capital. Once you contact us, we’ll visit your property and make an offer in next to no time. If you accept the offer, the closing process can be completed on your preferred timeline. Get in touch with us today to get started.
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