_PART 1_ Did your neighborhood pass your Assessment?

House flipping is an enticing trend, not just because it can be extremely lucrative, but also because it can be incredibly rewarding. People from all generations are cashing in, but it is easy to make costly mistakes at the beginning. One of the simplest mistakes to make when flipping is neglecting to research the climate of the real estate market in your city. If you are considering getting into the flipping business, but don’t have a firm understanding of your city’s market, I suggest you hit pause on anything else, and roll up your sleeves for some research.

It may feel a bit intimidating to make enough sense of your market at first, but if you equip yourself with the right questions, it is easier than it looks. Remember, no sale takes place in a vacuum, and every build, buy, and sell is impacted by the market. To assess the market, start with the following areas:

Recent Activity

What buys, builds, or sales have taken place recently in the area?

Competition

How many other realtors are active in your area, and how are their prices? Are they currently doing more buying or selling? What do they have to say about the market?

Crime

How rampant is crime in your area, and what crimes happen most often?

Property Value

Are prices in your area going up or down? What has been the price trend over the past couple of years?

New Projects

What new projects in the vicinity of the home are being planned, are in progress, or have been recently completed?

Amenities

What complimentary amenities (shopping, entertainment, fitness, convenience, etc.) are in the immediate vicinity?

Overall Market

What are things like overall? Are prices up? Is there a healthy number of sales in your area? Are house values on the uptick? What’s the market value currently?

It might take a little time to make sense of things, but assessing your market is easier than you might think. In fact, if you want solid answers, there are a number of resources that you can employ. Google Maps and Walk Score, offer tons of information about the amenities found in a specific city or neighborhood. For market reports, CBRE is a great resource, and for news or a broader picture of the real estate market, GlobeSt is a solid place to start.

_ PART 1 _

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