Want to make a living flipping houses? It’s not as easy as you may think. Shows like Flip This House and Flip Men have created a new level of interest in the house flipping market, but most people go into this process completely unprepared for the work at hand. Even if you are familiar with this process, you will likely go through this mental debate at least one time in your head: “Should I add on to this house before I sell it?”
There are times when home additions make sense for flipped homes, and there are times when they are complete wastes of money and time. We will go over your options so you can make the best decision for your flip.
Good Reasons To Add To A Home You’re Flipping
Here are a few reasons why you may want to invest in a new addition for a home you are flipping:
- All of the other homes in the neighborhood are much larger than yours.
- Your home looks older than other homes in the area and needs a modern upgrade.
- The floor plan for your home is outdated and will not support today’s buyers.
- You already have a buyer lined up who is looking for a bigger home in that area.
- Your home is missing a garage, bedroom, bathroom, or other space that most of the homes have in the area.
Simply put, you need to look around the neighborhood and see what kinds of homes you are going to be up against. If your home is severely sub-par, you might have an easier time selling it with a new addition.
Bad Reasons To Invest In A New Addition
Here are some reasons you may want to avoid home additions when you are house flipping:
- Your house is already the biggest one on the block.
- You bought the home for more than you wanted to spend (leaving less of the budget for renovations).
- Your home already has a good layout and square footage amount.
- You are looking for a quick turnaround in your purchase.
You know what they say: “If it ain’t broke, don’t fix it.” That applies to house flipping perfectly. Don’t invest in a new home addition if the house is already in good condition. Do whatever you need to do cosmetically and move on to the next project.