By: Elias Tsoukalis
House flipping is tough and can be one of the most intimidating types of business. However, if done right, it can be the most satisfying things one can do. Many people fail because they assume they can simply purchase a property, plant a few trees, apply some paint and perhaps renovate the doors and then resell it at a huge profit. Unfortunately, this is not always the case. Flipping is never that easy!
To become successful in this industry, there are a couple of things you must understand. What’s more, you must have the passion, dedication, and desire to succeed. Don’t expect it to be a smooth sailing because nothing worthwhile usually is. In the world of house flipping time is money. You always want every rehab property you work on to find a potential buyer as quickly as possible. The insurance costs, interest payments as well as taxes won’t stop accumulating unless your property gets a buyer. The longer your property remains on the market, the harder it becomes to sell. Potential buyers and their agents will always sense a lack of demand each day your house sits on the market. They will take advantage of your situation to adjust their offers accordingly. This is why you want to have your property sold as quickly as possible. Peruse the article and learn how to get your rehab property sold faster than ever.
There are potentially endless reasons why you would want to work with a real estate agent. Real estate agents boast a wealth of experience in the world of real estate. Not only do they have access to potential buyers, can list your property in the Multiple Listing Service (MLS) but have the information regarding the current market fluctuations as well as the network and skills to get the best price possible.
You may be able to sell your house yourself and save some money in realtor fees, but there are dire consequences to this. You might have to wait for a long time for the house to sell. In addition, showing and listing a property consumes lots of time. You’ll be required to make yourself available for all showings. If you don’t have the time and energy to waste, but want your rehab property sold with relative speed, working with an agent might be the best choice for you.
This is a critical factor that you must take into account. All prospective buyers always notice the price before anything else. As a savvy flipper, you must eliminate any form of emotional attachment as well as the ego you have with your property and provide its honest value in line with the current market prices. Your house may look amazing from floor to roofing but this does not entirely mean prospective buyers are willing to pay extra. Of course, this implies that you must research and learn your market. Remember, you want this property sold fast! You may have done a great job in as much as the renovation projects are concerned but still, you must be realistic. Gone are the days where you can demand high prices but still hope to get offers. If you list too high, the property won’t sell. On the other hand, if you list too low, you leave money on the table. Simply put, you should price your house based on the current market values, not on what you may have invested in it for improvements. Finding a potential buyer starts with pricing right.
After listing your property, make an effort to evaluate its performance on a weekly basis. This will give you a clear idea of its demand. Arguably, the best way to gauge if you have listed at the correct price is to evaluate the responses from your market. If you have very few buyers showing interest, then this could be a clear indication that you probably listed too high or there is a problem with your marketing strategy. Consequently, if you find yourself dealing with many buyers but none are making an offer, just know there may be a problem with either the presentation or something inside the house. You, together with your agent, should work tirelessly to ensure you identify and rectify anything that tends to jeopardize your success. If something needs to be tweaked a bit, be always willing to take necessary actions accordingly based on the results of your weekly evaluation.
Before listing your property, you must ensure that everything is in order. Your property must look perfect. Of course, it does not mean you renovate the whole house. If you add expensive wood floors, custom wood cabinets or even marble countertops, you may not get your hard-earned cash back! Just add special touches that aren’t costly. Be smart. Spend a little more on the plumbing and lighting fixtures, the kitchen faucets and perhaps on a new doorbell.
You should also pay special attention to your exterior. You are never sure of what a potential buyer is looking for. Clear all the bushes, trim all the excessive branches and leaves in your yard and don’t give your buyers a chance to change their mind. Keep in mind, you are competing with many other investors in the market. Therefore, your property must stand out from the crowd. Enhance the looks of your house, build a first impression and get it sold quickly.
As a savvy real estate flipper, you always want to earn the highest amount of cash for your property. However, you also know well ahead of time that the highest offer may not always the best one. It is imperative that you only accept an offer that guarantees a prompt closing process. If you didn’t know, you can possibly delay the whole process, lose the momentum you struggled to build by accepting a wrong offer. The best offer is not just about profit, but the security and the peace of mind of knowing you can close immediately. Examine the strength of the pre-qualification document. The offer should feature a quick mortgage contingency and a significant down payment. Be smart and chose an offer you are comfortable with.