Remodeling homes and flipping them for a big profit has been a popular trend in the U.S. for years with opportunists cashing-in big. In 2017, the average flipper made over $66,000 per house. In 2019, the best cities to flip houses included Sioux Falls, SD, Missoula, MT, Rapid City, SD, Billings, MT, and Peoria, AZ. Two years ago, those markets were very different. This just shows how important it is to prepare before diving into the flipping industry because a lot can change.
While forecasts for the real estate market over the next few years are slightly conflicting, housing prices are on the rise and flipping continues to be profitable in general. However, to determine the nature of the market, it really depends on where you are buying and selling. If you’re in a sellers’ market, you might consider remodeling and flipping a house to make a profit.
Despite the temperamental factors that influence the real estate market, one thing is for sure, with the popularity of real estate and flipping shows, buyer expectations are high. If you are planning to flip a house this year or the next, consider these future trends:
Kitchen and Bathrooms Are Key
It’s no secret that the kitchen and bathroom are two of the most important rooms to buyers. These should be your focal points if you’re picking and choosing where you’re going to make your improvements.
According to the latest plumbing industry statistics, consumers are worried about aging pipes that might lead to costly repairs. Additionally, Americans are trying to reduce their impact on their environment by opting for solar-powered heating elements and appliances that conserve water.
When choosing materials, you also want to be conscious of design trends that similarly focus on sustainability. Over the next few years, we will continue to see a rise in the popularity of natural and recycled materials such as walnut cabinetry and rustic wood paneling that makes a beautiful backsplash. Whenever you’re doing renovations, just make sure you use the right protection to preserve the integrity of the other surfaces in the home.
Smart Technology
As technology becomes integrated into virtually every aspect of our lives, there is no turning back. From our phones to modern architecture, this trend is only expanding which is why there has been a rise in gadgets for the home that promote interconnectivity. From security to lighting that’s controlled from your mobile device to sophisticated smart walls that will be must-have in homes of the future, technology is a critical factor in any remodel that you’re planning to flip.
These advanced solutions might be a perk for some but are expected by most modern buyers.
Affordability Is Essential
These factors considered, don’t invest so much into making the house high-tech and energy-efficient that none of this generation’s buyers can afford it. Many people who are going to be looking for houses will still be battling with student loans meaning that they’re getting help from mom and dad to buy their first house instead of throwing money away on rent and are coming into the buying process with larger loans. These are not buyers who have an exponential amount of money to spend, but that doesn’t necessarily make them easier to please.
As a flipper, you need to be conscious of striking the right balance between the housing cost threshold that will turn off your buyers and the perks that will draw in multiple offers.
Bigger Isn’t Always Better
One of 2019’s most important architectural trends was small home designs. With more single millennials purchasing homes and continued focus on reducing waste, this trend likely won’t be changing. Often, smaller or even tiny homes offer younger buyers a more affordable and efficient option that suits their lifestyle.
You should keep this in mind when choosing a home to flip. It likely will be harder to get a huge two-story for a family of five off your hands that it would have been in the early 2000s.
The key to remodeling and house flipping in the future will be keeping an eye on real estate and design trends as well as buyer priorities. Whether you’re looking to get into the industry or are a seasoned flipper, taking a strategic approach is always wise.