Getting the Maximum Return for Your Property
When you’re flipping a property your goal is always to buy low and sell high, but do you know what actually goes into making that happen? First of all, you need to be able to see the end before you get started and you need to always remember that you’re trying to generate the maximum return on your project. With these 5 tips you’ll be more likely to do just that.
Be the Buyer
From the very beginning of the process you need to be thinking like a buyer, putting aside your personal preferences during the rehab. Remember your end goal is to sell the home, not live in it, so your opinions don’t matter as much. Take a look at other homes on the market in the area to get an idea of what is currently popular and selling quickly. This will help you to determine what work you should do to your property to make it more desirable. Look at homes that have been on the market for a while as well to get a sense of what isn’t selling so that you can avoid making similar mistakes.
Stay Affordable
Buyers all want the same thing: the nicest home possible; unfortunately they aren’t usually willing to pay a premium for it. This means that you need to create a balance between luxury and affordability. You can make the home as nice as possible without making the home cost way too much. After all, just because you put money into a property doesn’t mean you will always get it back in the end. You want to do the work that creates the highest demand, which means staying affordable. Do the right work and you’ll attract the right buyers.
Look for the Right Buyers
The highest bidder on a property isn’t always the best choice and you shouldn’t accept the very first offer you receive. You should sit down with your real estate agent to look at every offer and evaluate which one will be the absolute best buyer for your property. Look at contracts, pre-qualification letters, and any financials that have been provided to decide which one will be able to close without any issues. You’ll save time, money and a headache by doing so.
Market from Day One
There is no rule that says you have to wait until the rehab project is completely finished to start marketing the home. In fact, you can start putting out your feelers as soon as you acquire the property. Let people in your network know about the property while you’re still working it. Your attorneys, mortgage brokers, contractors and others in the real estate business will help to spread the word about the property. The more people that know about the home the more chance you have to find a buyer and the less time you’ll actually spend waiting for it to sell.
Set the Right Price
The most important step you will take in this process is setting the right price for the property. In order to draw interest you’ve got to set a price that will actually sell the home. Listing too high can lead you to lose out on a lot of buyers, but pricing too low can also mean you’re leaving too much on the table. You should work with your team to set a price that’s fair while still gaining the maximum profit from your project.
If you’re flipping a property you know that your goal should be to buy low and sell high while making the maximum profit possible. You’ve got to do the right work, be affordable, think like a buyer, market well and price to sell, if you hope to be successful. Using these tips and tricks you’ll be off on the right path from the start.