Whether it’s a supplementary income stream for you or a full-time gig, flipping a home is a great way to make money. But there’s a lot to sell investment property, not just sticking a “for sale” sign on the lawn and crossing your fingers.
If you want a successful sale, keep these tips in mind and make sure you do it right from start to finish.
(Note: These tips are primarily aimed at new investors, but we hope everyone can benefit from them.)
8 Expert Tips for Selling the Latest Fix & Flip Properties
Get your home in the best possible way
Flipping requires adding strategic value to your investment property, so it gives you the greatest benefit of your money. Not only should you rehabilitate obvious problems such as leaky faucets and old flooring, but you should also consider what people are looking for when looking at homes in your area.
Are your target buyers a young couple wanting an affordable starter home or a wealthy family interested in the latest finishes and amenities? You want to walk the subtle boundaries between providing the features the market wants, without over-improving your neighborhood home.
Carefully consider your home’s ARV based on your neighborhood sales comp. Sell at a higher price than the Comp and don’t over-improve in the hope of becoming the “best house in the block”. We recommend that you factor more conservatively, assuming a selling price that matches your neighborhood.
An empty house doesn’t look big. They actually look cold and terrible, and buyers have a hard time imagining what it’s like to live in them. Staging your property with paint, furniture and accessories will highlight its best features and make it look more attractive to potential buyers. A 2013 survey by the Real Estate Staging Association found that staged homes spent 72% less time in the market than non-staged homes.
When staging, make it easy to reach as many people as possible. Use neutral paint colors (beige, tongue, taupe, etc.) to minimize furniture (crowded rooms don’t impress anyone), like a magazine on a coffee table in the living room. Add an element that evokes a feeling like a bathroom scented candle.
Find a knowledgeable real estate agent
A good agent is the key to getting the best deal possible for your home and the least painful way possible. Agents with extensive experience both in the industry and especially in your area will guide you through all of this list and then some. In the meantime, answer questions and guide you through possible obstacles.
Ask a friend or family member for a referral, or search the internet for comps in your area to find out which agents are listing them. Go to their website, feel their style better, then call them to discuss your needs. Make sure you are happy with them and that it takes time for them to answer all your questions completely. Selling real estate with income can be stressful and a complex process, and you want to know that you are in good hands.
Your realtor can advise you on the best way to seduce buyers and price your home to get a good return on your investment, but a good place to start is yours. Look at similar properties in your neighborhood and see what they sold for. Comparisons that are still on the market after weeks may be too expensive. You can also look at the property tax records in your city to find out the general market value of housing in your area.
It’s true that spring and summer are usually the busiest times in home sales, but that doesn’t mean that you’re the only time you need to list your home. There may be fewer buyers in the winter, but they can be more motivated (such as those who are moving for work and need to find a new home as soon as possible). All market conditions are local and should be taken into account when investing in areas with strong seasonal factors, such as beach towns.
Put out words
Your realtor will undertake marketing your home for you, but there are many things you can do to help spread the word further. Talk to your friends, family and colleagues about your property and post your photos on Facebook, Twitter and Pinterest. Word-of-mouth can spread rapidly, and a friend of that friend may be just your ideal buyer.
Make the most of screenings / open houses
When it’s time to show your home, whether it’s a reservation or an open house, it’s time to scare yourself. Your realtor is a professional and can answer any questions that potential buyers have, and your uneasy presence or additional comments do everything the buyer has to offer in your home. It just adds elements of pressure and annoyance that may discourage you from actually seeing it.
Go for a coffee yourself, relax after all the hard work you’ve spent, and let your agent handle this. That is their purpose.
Perform expert negotiations
Realtors are important allies at every stage of home sales, but negotiations are when you will be most grateful for their advice. You have spent a lot of time and effort turning your income property into a winner, and then offer and oppose offers in a way that keeps you away and protects your interests without keeping potential buyers away. It can be difficult to respond to.
Talk to agents, mentors, and Mastermind groups. Listen to their recommendations, trust that they’ve seen it all before, when to counter, when to hold firmly, and when to “willingly accept your offer.” I know what to say.
What tips have helped you sell your property fast?
Let us know in the comments!