Flipping houses can be tricky, even for seasoned real estate agents. In an attractive beachside neighborhood like Corona Del Mar, there’s a lot to consider when it comes to fixing up a house and selling it for a profit. As with any real estate endeavor, the process can also carry its fair share of stress. With a good realtor at your back, here’s everything you need to know about flipping houses in Corona Del Mar.
2023 Corona Del Mar housing market analysis
Corona Del Mar is a high-price neighborhood, which means a lot of potential profit if you successfully flip your property there. As of June 2023, the median listing price was $4,197,500. Houses tend to spend about 40 days on the market, but this has been declining over time since 2022. This indicates an increase in interest from buyers, which matches trends seen all over the U.S.
Finding the right Corona Del Mar properties to flip
Of course, you can’t flip a house if you don’t have one to sell. Acquiring houses to flip can be a difficult process in itself, but one of the most important things to help accomplish this is working with a good real estate agent. An experienced agent will be familiar with the housing market in Corona Del Mar, and they can use that expertise to help you find the best properties for your goals. You can also look into talking to wholesalers, finding local auctions, and keeping an eye on the local MLS to see what properties go up for sale.
Analyzing a house in Corona Del Mar
It’s important to bring a critical eye to any house you plan on picking up for a flip. You’ll have to take into account all of the improvements and repairs you need to make before the house can be resold. Of course, flipping houses in Corona Del Mar will always require some degree of refurbishment. This is the nature of flipping houses. But if you buy a house that’s too much of a fixer-upper, you could be looking at far too much expense before it’s ready to sell. This will lead to a much smaller profit, or even a net loss, once you’ve closed the deal.
Many real estate experts will use the 70% rule to determine if it’s worth investing in a house to flip. This rule requires estimating the house’s total value once all of its necessary repairs are completed. Once you have the ARV, or after-repair value, of the house in mind, you should aim to pay no more than 70% of that value in obtaining the house. This is a risky policy, especially since it requires a lot of estimation and guesswork, but it’s a good way to give yourself the highest possible chance of turning a profit.
Financing your Corona Del Mar house flip
When it comes time to go through with the flip, you’ll need to think about how you’re going to pay for the property. If you were buying the house to keep, you would likely be looking into getting a traditional home mortgage. This is still an option here, but the time it takes these loans to go through makes them risky for flipping houses in Corona Del Mar. In the months it takes these mortgages to go through underwriting, someone else could have seized the deal.
A better option for house flippers is a fix-and-flip loan, which is a short-term, high-interest loan used specifically to renovate a property in order to resell it at a profit. These are better suited for flipping a house, but they carry considerably more risk as you will pay considerably higher rates. You’ll want to make sure you have your house flipping plan laid out clearly so you’re not paying more in interest than you need.
Making a home shine in Corona Del Mar
Once you have your property ready to sell, it’s time to focus on maximizing its appeal for buyers. Even after the necessary repairs and renovations have been carried out, there are some important things to keep in mind when maximizing house appeal. Minor upgrades beyond vital repairs can help catch the eye; a fresh coat of paint, for instance, can go a long way to improving the look of a house.
Top-notch listing photos are key. You should try to decorate the house in a minimal and tasteful fashion to help potential buyers imagine making a new life for themselves there. Once decor has been handled, you should consider reaching out to a professional photographer to stage high-quality listing photos and help bring out the best in the property you’re flipping.
With the help of a good real estate agent, you can also begin to look at marketing your property. Email campaigns and social media ads are good ways to spread the word about the house and get buyers to take a look. Hosting a good open house is another key step, and your realtor can also help you determine the best time to schedule such an event.
Ready to start flipping?
With all of these tips in mind, you can be confident that you’re maximizing your profit in Corona Del Mar. If you’re ready to start flipping houses in this beautiful neighborhood, reach out to a skilled real estate agent like Carol Lee. Carol has been working in the area since 2003, and she has decades of experience to offer in helping you get the most value you can out of your house-flipping journey. With her professional aid, tricky steps like finding an ideal house to flip, getting your finances in order, and arranging the necessary repairs will go much smoother. If you want to start selling in Corona Del Mar, Carol Lee has got you covered.
