Homes In Los Altos
Los Altos is one of the hottest markets for flipping houses. When thinking about attempting a flip, there are many things to consider before getting started. Los Altos has the margins that are attractive to many investors, but also innately has a safe exit strategy based on its high price point. Typically, many of the homes that are suitable for flipping, are priced between $2.0 million to $3.0 million. They are in serious need of repairs, cosmetic improvements and structural additions. Due to the layout of the city, and that the majority of homes are “ranch style“, they are situated on large lots. A large lot is generally considered to be 10,000+ square feet or larger. Lots this size support homes that are 3,000+ square feet, often times up to 4,500 square feet. The larger the lot, the larger the home footprint supported.
Five things to consider when flipping homes:
- Start by looking for an ideal home to flip. The home should be located in a desirable neighborhood, have highly rated schools and should appear dated or in serious need of updating.
- When securing financing, make sure that you are financially secure enough to be able to “hold” the property in case of changes in the real estate market.
- Some of the cheapest ways to improve a home, are the most lucrative ROI items for investors. Examples include basic cosmetics like new landscaping, painting, fixtures, appliances and flooring.
- Always be calculated from the beginning about the fixed costs associated with completing a successful flip. Examples include Realtor fees, Title & Escrow fees, city and county taxes and how long of a period the hold will be for property taxes. On top of that list, you should study what the construction costs are in a given area are, what labor and materials cost are.
- Using a licensed contractor or subcontractor is HIGHLY recommended. Although, they may have slightly higher base costs on bids, labor or materials. They are insured, experienced and do quality work. If you need suggestions for reputable contractors, contact me here!
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Los Altos Home Flipping
Coming out on the other side of the flip, there are important factors to consider. Have you “timed” the market to come on market during peak activity? Or is it a slower part of the year, like between Thanksgiving and New Years? Successfully flipping a home requires the exit strategy, just like the acquisition and renovations to be well coordinated. Using Nichols Luxury Homes provides a guarantee that the marketing, timing, negotiations and closing will be handled with the highest priority.
With our list of priority vendors and contractors, the highest quality work and integrity is to be expected. Taking your goal number for a final sales price, we are able to lay out a strategy to maximize results. The trickiest part of the process is locating and securing the property in question. It can be rare to find the perfect candidate, where the home is fairly priced and the selling party doesn’t want to perform any of the work themselves to fix it up.Thus, leaving the margins for the next homeowner or investor. Thats where we come in!
Los Altos Market Update
The Los Altos real estate market has seen some interesting trends play out since March 1st of this year. With COVID-19 having taken hold of the economy at a similar point it is extraordinary that the median list price for homes has risen by almost exactly $1 million since then. Steadily climbing from $3 million to just over $4 million median list price. The price per square foot has steadily gone down in the same period, settling at $1,592. Days on market has remained in its normal range, hovering today at 37 days. This is following dramatic numbers in March. On March 20th 2020, Los Altos hit a low for the year at only 11 days on market!
As of today there are only 22 homes listed, which certainly aides in the process of selling quickly and for higher median sales price. The most expensive home on the market is listed for $7,188,000. The least expensive home is listed for just $2,098,000. Based on the numbers presented as of today, Los Altos remains extremely well positioned for home flippers when they can find the right deal.
Los Altos Connections
We are always here to help with any questions! Often times, our knowledge of the area and connections with other agents gives us the edge in locating and securing homes suitable for flips. Call or text us today to see what we have in the inventory!
(650) 575-4069
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Updated 7/16/2020
As of this week the median list price in Los Altos is $3,688,000. Which has, since April 1st, steadily gone down from about $3.8 million. Homes in Los Altos are currently selling for $1,282 price per square foot. The homes are spending an average of 74 days on market. Inventory has trailed off, exposing a downward trend. As of today there are only 35 homes for sale in Los Altos. The rental market in Los Altos has remained very robust, the average home is renting for $6,548. The most expensive home is listed at $14,000,000 and the least expensive is listed for $2,248,000. With inventory this low in Los Altos, an upward trend in prices should be expected.
