As a house flipper your job isn’t over until the property is sold. You can do great rehab work but until you are at the closing table there is still more to be done. Every day that you own the property you are on the hook for the carrying costs and other expenses. It is not an exaggeration to say that with a rehab time really does equal money. Additionally having capital tied up in one property may prevent you from purchasing others. You want to get every property sold as quickly as possible but even more so with fix and flip properties. Here are five tips to help get your rehab sold quickly.
- Use A Real Estate Agent. There is a difference in getting a job done and getting it done right. Speed and efficiency are the name of the game when it comes to getting your property sold. You may consider selling your home on your own and saving some money but you are giving up much more than you are getting. Selling a home yourself is a lot more work than you may think. Not only do you have to find creating ways of marketing the property but you need to make yourself available for all showings. There are times in your business when it pays to use a professional and selling your home is one of them. Not only does a real estate agent know how to market your property but they have established contacts in the area. These contacts are vital in helping generate interest and creating a buzz. They can show the property quickly and answer any questions a buyer may have about the market. You may be able to get your property sold but if you want it done quickly you need to enlist the services of a real estate agent.
- Price Right. The first item any prospective buyer notices is the price. The property may sparkle from floor to ceiling but it doesn’t necessarily mean buyers are willing to pay a premium. If you truly want a quick sale you need to price in line with what is on the market. Don’t just look for the highest comparable sale and base your list price off of that. Trying to shoot for the moon and squeeze every dollar often has a negative effect. A property that is listed too high from the start may not even be looked at. Gone are the days where you can list high and hope to get offers. If you out-price your market prospective buyers will look for more affordable market options regardless of the quality of your work. Always take in account what is currently on your market or sold within the last sixty days as you think about where to list your property.
- Evaluate Weekly. The first few days after your property is listed should be a pretty good indicator of demand. There is no better way to tell if you have listed at the right price than by listening to the market. If there are limited showings it can be viewed as a sign that you may have listed too high or there is an issue with the marketing. If buyers have flooded the property without offers there may be a problem with the presentation or something inside the property. In a quick sale situation every week can feel like months. You should huddle with your real estate agent weekly to get a sense of what is going on. If you feel that marketing needs to be ramped up you can talk about alternatives. If there needs to be a price reduction you should be ready to take bold action if necessary. Don’t wait for the market to come to you. Evaluate where the property is every week and make your decisions accordingly.
- Presentation Matters. You never know what a prospective buyer will notice. From the very first day your property hits the market you need to make sure every inch of the property is perfect. Even if you think it is clean enough you need to go the extra mile and have everything professionally cleaned. It is also important that you don’t neglect the exterior. Overgrown bushes, excessive leaves in the yard or rusting gutters can be the think that changes a buyer’s opinion. It’s a cliché but you never get a chance to change a first impression. With excessive demand in most markets you need your property to stand out from the crowd. How the property looks is critical in getting it sold quickly.
- Accept Right Offer. All sellers want to get the highest price for their property. However when selling a rehab the highest offer may not always be the right one. It is more important that you accept the offer with the greatest chance of actually closing. By accept the wrong offer you set the process backs weeks and possibly longer. You lose all momentum the property has and you are forced to pick up where you left off. The right offer may sometimes mean a little less profit but the security of knowing you can close quickly. With any financed offer you need to look at the strength of the pre-qualification letter. There should be a significant down payment as well as quick mortgage contingency. Don’t just jump at the first offer that comes your way. Take a minute to gauge the strength of the offer and make sure you are comfortable.
The quicker you can turn your rehab over the faster you can move on to the next project. Follow these five tips to help get your next flip sold quickly.