The Bridgehampton, Sag Harbor, and Water Mill real estate markets are some of the hottest in the country right now. As such, it's becoming increasingly difficult to find an attractive deal on a home in these areas. However, this doesn't mean that it's impossible to flip a home in the Hamptons. In fact, there are still many great deals still to be found if you know where to look. In this blog post, we will discuss some of the best ways to flip Bridgehampton real estate, Sag Harbor homes for sale, and Water Mill homes for sale.
How to flip a home
The basics of flipping a home are the same regardless of where you are doing it. You need to find a good deal on a property, make some renovations, and then sell it for a profit. However, there are a few things that you need to keep in mind when flipping.
One of the most critical things to remember when flipping homes in these markets is that you need to be able to move quickly. Sales of Bridgehampton, Sag Harbor, and Water Mill real estate are all fast-paced. This means if you find a great deal on a property, you need to be ready to snag it as soon as it hits the market. You also need to be prepared to spend more money than you would in other markets. The Bridgehampton, Sag Harbor, and Water Mill real estate markets are all well above a $2,000,000 median, so you should expect your initial purchase to be quite high. With key upgrades to smart home and sustainability features, as well as popular high-ticket upgrades like the kitchen and bathrooms, you can expect a solid return on your investment.
Another thing to keep in mind when flipping Bridgehampton real estate, Sag Harbor homes for sale, and Water Mill homes for sale is you need to have a strong team of contractors. These markets are very competitive, so you need to be sure that you have a team of professionals who can get the job done quickly and efficiently. In addition, you need to be certain your contractors are experienced in working on luxury properties. This will ensure your renovations meet the standards of interested buyers.
Market trends
When flipping homes, it is important to have a solid understanding of the markets In which you plan to flip properties.
Bridgehampton
The Bridgehampton real estate market is quite tight, with under 25 homes for sale monthly for the past two years. The median list price is still at a two-year high near the $4.4 million mark, though the median has dropped as low as the $1.5 million range back in September 2020. The median stayed near the $2.5 million mark from April to October of 2021 before climbing from December 2021 to February 2022's peak of $5,695,000. With the number of listings so small, any home which lingers on the market skews the median of days from listing to closing, but the median in May 2022 was 102 days or a little over three months.
Based on the Bridgehampton real estate market data, it is worth snagging one of the lower-priced homes available, since you can expect upwards of a million dollar increase in return on investment depending on how impressive your upgrades are when compared to similar sales.
Sag Harbor
In looking at trends of Sag Harbor homes for sale, there have been fewer than 35 homes available for sale per month for the past two years – a clear indication of a hot seller's market. Over the past two years, the median list price has mostly stayed between the $2,000,000 to $3,000,000 range, with notable increases from September to December 2021, when the median climbed to the $4,000,000 to $6,500,000 range. Looking at the past two years, homes tend to stay on the market for no longer than a median of 170 days, with exceptions seen in July and August 2021 when the median was above the 200-day range. As such, you can expect your listing to leave the market in approximately three months, though it depends on how well you price your listing when you finish your flip upgrades.
Sag Harbor homes for sale and land for sale can still be obtained for under a million and can go for above $10 million, based on listings as of June 2022. As such, if you snag one of the less expensive listings, you can expect a significant increase in return on investment when you complete and list your flip.
Water Mill
When reviewing Water Mill homes for sale trends for the past two years, the number of homes available for sale per month has not exceeded 15, so the market is very tight. The median list price usually stays between the $4.5 to $5.5 million range. With the market so tight, any outliers significantly skewed the median, as seen with November 2021's median list price of $7,695,000. The median days on the market have usually been between 100 and 180 days, with a two-year low of 41 in October 2020 and a two-year high of 288 in November 2021. Since January 2022, homes have been lingering on the market longer, with the median increasing monthly.
Among the small number of Water Mill homes for sale listings, homes can still be snagged for under $3,000,000, with the potential to sell them for upwards of $8,000,000 with the right upgrades. As such, if you snag one of the less expensive listings, you can expect a multi-million increase in return on investment when you complete and list your flip.
If you follow these tips, you will be well on your way to flipping a home. Just remember to move quickly, spend wisely, and have a great team of contractors. If you want to learn more about buying and selling Bridgehampton real estate, Sag Harbor homes, and Water Mill properties, please don’t hesitate to reach out to local agent Crosby Renwick for expert guidance every step of the way.
