If you’re thinking about buying a home to fix and flip, it’s important to make sure that you know the property has value and will be appealing to buyers. Here are some factors to consider before you make the purchase.

1. What Valuable Elements Does It Have?

Even if you’re planning to add value to a home by renovating it, it’s important to take note of whether the property is actually worth putting the time and money into. Take a good hard look at the home’s location, the lot size and condition, the neighborhood it’s in, and the floor plan. Can you remove, or at least minimize, all the glaring red flags with your renovation budget? Beyond that, do some online research on the nearby schools and area crime statistics. If the house turns out nicely but is in a dangerous neighborhood, buyers aren’t going to be as interested in moving there.

2. What Are the Other Houses in the Neighborhood Like?

Research the value of other homes in the neighborhood. Even after you fix and flip one, if the houses around it are also in terrible condition, it’s going to be more difficult to convince a buyer to move in there. On the other hand, you also want to make sure that the homes in the area aren’t so nice that even after you renovate the property, it will still be an eyesore or significantly less valuable than the rest. You’ll also want to make sure you match the general look of the neighborhood as you fix it up, so take a drive through the area or go visit other homes for sale.

3. What’s Selling?

Look up similar properties in the general area that have sold recently. What common features do they have? Does your property have those, or could you add them? Make sure that the home you’re looking at can compete with other options on the market. Look at aspects like size, age, number of bedrooms, and landscaping to make sure the property is desirable for buyers. This can also drive your renovation plans, as you can know where to spend more money on things like adding an extra bathroom in order to make it as attractive as possible.

When looking for a home to fix and flip, it’s important to not only see its potential but also to know if buyers will see its value as well. With some good research and an honest assessment, you’ll be able to find the right home to bring out the best in.