6 minute read
How to sell a fix and flip property quickly
Yvonne Mcfadden
When done correctly, flipping a home can turn into a gold mine for you. In some instances, the profit margins from some of the fix and flip properties will eclipse the typical average earning you get from other investments, making it a lucrative way of making a living.
Be that as it may, flipping properties opportunities do not come very easily. It requires effective processes and systems in place to ensure a smooth flow.
Given this business’s nature, most agents and sellers want to know how to sell a fix and flip property efficiently and turn the opportunity into a house flipping snowball. It is relatively easy, and this article will delve deeper into the art and uncover some of the basics of selling a fix and flip property.
Make sure that your renovations are done right. Many real estate agents, homeowners, and flippers will invest a lot of money on renovation, but they will still struggle to make a sale in the end. Each investment you make in real estate is as good as its execution. And for home flippers, rehabbing the home has to be done right. Your primary focus needs to be on the small repairs and cosmetic renovations that will likely be inviting to potential buyers. It’s also important to note that a one size fits all approach will not work. With this understanding, do your research on the potential buyers, or the people you are targeting; what makes sense to them, and what doesn’t, what excites them, what would they like to see, are they young couples, probably looking for an affordable house to start with, or the seniors who want a calm and relaxing space so on. This information is vital to have beforehand so that as you make your renovations, you are renovating only the essentials.
Additionally, do not go overboard with the fix and flip properties; otherwise, it will be too difficult to sell.
Here are some quick tips to unlock profit potential right from the start;
Be prepared, do your research, and from the first day, hit the ground running with proper renovations plans long before closing. ‘ Work on relationships with all the parties involved. If it is the contractors, pay them well. A good team of professional contractors will be critical to repeat flipping. Never waste material and tools. Be cautious of how you use the resources at hand. They will come in handy later on. If you want to
do this for long, make sure to have readily available tools and inventory to get things done. Make every effort count, especially if it involves rehab. Commit to it, which in the long run, will preserve and build your reputation. This is a good way to get buyers under contract even before the project is complete. Additionally, do not make sure to include the marketing budget in your initial figures. As a matter of fact, check and recheck your numbers to make sure that your project is on track financially.
MAKE THE PRICING COMPETITIVE Talking of numbers, pricing a fix and flip property can be challenging. This is one area that most agents will struggle with. After all the renovations are done, after all the additions, how do you price the home without feeling like you have overpriced it? Most agents and house flippers will overprice the home, which is arguably one reason why a fix and flip will not sell fast. To sell fast, get the pricing right. Overpricing the property might make it relatively hard for you to get the property off the market; at the same time, pricing it too low at times will leave a lot of money on the table. Pricing details of the home should happen subconsciously, even before you purchase the property. Before purchasing the investment property, estimate the repair value, and ensure that in the end, you will make a good return on your investment when the rehabbed property is at market value. As a rule of thumb, you should not buy a property with a higher than 70% of the ARV minus the property’s repair costs.
MARKET THE PROPERTY PROPERLY When is the right time to begin your marketing plan to resell your fix and flip properties? Figuring out the right time to market your flips will be one of the most contentious aspects of the house flipping process.
In most cases, and with ordinary homes, realtors are often decidedly for beginning an active advertising campaign right after the property is 100% polished, cleaned, and even staged. If you think about this, it is often in the realtor’s favor However, in the case of home flipping, it can be tricky. Every day that the home does not sell means the lesser the profit due to the holding costs. Savvy home flippers will start marketing efforts immediately they acquire the property or even before that. You have to realize that the less you have to put in, the less time it will take for you to resell, and also, the lower the risk exposure and the higher the profits margin. Depending on how you chose to view it, this may be an ideal scenario for the buyer. Some buyers will prefer completing improvements much to their liking. Still, this scenario is an exception rather than a rule because most house flippers do not want buyers to be active on the job site.
Work With Experienced Real Estate Agents The power of a real estate agent in any real estate transaction is unparalleled. Working with an agent unlocks unlimited possibilities, things you never thought would be possible. Experienced realtors are the key to selling your fix and flip properties quickly and getting good deals. When it comes to finding an agent, find the one who specializes in selling a fix and flip real estate properties, and has a good understanding of the local market. Most people underestimate the power of a real estate agent but what you need to realize is that real estate is local, and the person who can help you decipher the market is a real estate agent. Without an agent, selling a rehabbed house in Arizona will turn out to be a nightmare.
If you are looking to sell your flipped home in Arizona or are new to this investment strategy, talk to Yvonne McFadden. Yvonne is an experienced realtor in Arizona with many years of experience in the field of real estate. To get in touch with Yvonne, Follow this link; https:// thepowerisnow.com/yvonne-mcfadden/.
Sources;
https://www.investopedia.com/articles/mortgages-realestate/08/house-flip.asp https://www.mashvisor.com/blog/sell-fix-and-flip-quickly/ https://www.athomebuyers.com/blog/sell-a-fix-and-fliphouse-fast-in-kenosha-racine/
