House flipping is where someone buys a house and quickly resells if for profit. With house flipping, there’s the 70 percent rule, which says that an investor should pay 70 percent of the “after repair value” of a property minus the repairs needed. Essentially, the after repair value equals what a home is worth after it’s full repaired.
You see, with house flipping, generally older homes are bought and fixed up such that they’re more modern, nicer, and, ultimately, more appealing to today’s generation of potential buyers. Say, for instance, there’s a decent home on the street built in the 1950s, but it has become outdated. So if it were to sell as-is, it might fetch $90,000. A house flipper looks at the house and says, “Well, I can update it doing a couple of things, and after I do those things I can try reselling it for $140,000.” Typically, to improve a house, the house flipper might remodel the kitchen and bathrooms to make them more modern, while also painting the walls in the house and adding fresh, new carpeting. Basically, the flipper wants potential buyers to walk in and say, “Nice! I can work with this.”
How Carpeting Can Help House Flippers
Carpeting covers a lot of ground in a home, doesn’t it? Some homes have “wall-to-wall carpeting,” which means it’s almost everywhere underfoot. Now imagine you’re trying to sell a house for a profit, but it has soiled, stained or matted carpet. Is that going to appeal to buyers? No. In fact, it detracts from their overall impression of the place and might cause them to say, “Can you knock off a couple thousand because the carpet’s so bad?”
If you’re going to sell your house and/or you’re a house flipper looking to make a profit from selling a house you fix up, then here’s what you should do: add/replace the carpeting throughout the house. It’s a cost-effective way to refresh the look of the place and cover up floor imperfections, too.
Come to Carpet Closeouts and ask to see a “textured saxony,” which is a generic but nice carpet that looks like you paid more money for it than you actually did. Also consider using “BCF fiber” for a high-end look, and if you’re in a city-setting, consider a “cut-and-loop” style rug with a geometric or pin-dot look. And, of course, the long-pile frieze look for both texture and comfort is a popular choice. Color-wise, pick something neutral that’ll look good with a wide variety of decors.
For more info about carpeting options, please call Carpet Closeouts of Phoenix at 602-493-7700.