One of the keys to making a profit on a fix and flip is to sell as quickly as possible right after rehabbing is complete. The longer it takes to sell the place, the less money will be left in your pocket. When you factor in the carrying costs and the potential for market conditions to fluctuate, you stand a much better chance of reaping a higher profit if you sell quickly.
Here are some tips to help you unload your flip faster for a heftier profit.
1. Renovate Specifically For Your Target Market
What buyers in one area might want may be completely different from what buyers in another neighborhood might be looking for. Your renovations should reflect what the target market wants or can afford. For instance, what buyers in the downtown area might expect could be different than what buyers in the suburbs.
Make smart renovation choices when updating your investment property, and think carefully about who your target buyer is and what their must-haves are. Ideally, you want to implement the characteristics that buyers need without breaking your budget while still reaping a sizeable ROI when you sell. By offering the traits that your target audience is looking for, you’ll be able to find a willing buyer much faster.
2. Price it Right
Before you even think about buying a home to fix and flip, you need to find out how much you can realistically sell it for once it’s been rehabbed. You need to work backwards with the financials of the project in order to make sure you will profit when all is said and done.
There’s no sense in taking on a project if it’s going to cost you more to purchase and fix the property compared to what you can sell it for. You won’t be able to price the home according to how much you spent fixing it up. That’s where researching comparable properties in the area becomes extremely important.
That said, you will need to make sure that the listing price of your rehabbed home is at market value. Buyers will probably notice the price of the home before they even notice what it looks like. Just because you’ve included all the bells and whistles doesn’t mean that buyers will necessarily be willing to pay a premium for them. If you want to sell quickly, you need to price the home based on what the current market dictates. Be sure to consider what is currently on the market as well as what has sold in the recent past when coming up with your listing price to ensure a quick sale.
3. Have the Home Professionally Staged
Now is not the time to skimp on your investment. You’ve gone so far as to spend a lot of money buying and fixing the place up, so why stop short of presenting it in the most attractive light to your pool of buyers? People who are looking to purchase a home want to have some sort of emotional connection to it, and staging can help bridge that gap.
Presentation is super important when it comes to finding the right buyer and making a quick sale, and professional home staging is often the critical component that’s needed to achieve that goal. Rather than leaving the home vacant and hoping buyers are able to visualize how the place could look when it’s fully furnished and decorated, you can do that hard work for them by having the home professionally staged.
4. Carefully Evaluate the Final Product
Hopefully, you’ll hire reputable contractors who are good at what they do, but it’s still wise to keep tabs on every phase of the project to make sure the work is being done as per instructions and in a timely manner. As such, you should make yourself available to frequently visit the property as the work is getting done. Before the contractors are off the hook, make sure you do a final walk-through to see if there are any loose ends that need to be attended to.
Once the work is complete, have the home professionally cleaned from top to bottom. You don’t want buyers to walk into your home if there are still remnants of dust and other debris left behind from all the construction that was done. The house needs to be in immaculate condition before the first buyer walks through the front door. Any issues that haven’t been addressed could potentially turn off buyers and take longer to sell.
5. Don’t Forget Curb Appeal
As important as the interior is to a successful fix and flip, the exterior cannot be overlooked. You may have revamped the exterior by updating the window shutters, adding a new roof, or refacing the walls, but there’s a lot more that goes into curb appeal than just that.
Landscaping can make a massive difference to the look and feel of a home. In fact, you should consider dedicating a big chunk of your budget to adding greenery to your outdoor space. Adding trees, bushes, flower beds, hardscaping, and ensuring that the grass is mowed and free of weeds can do wonders for the home’s exterior and overall curb appeal, so don’t overlook this critical piece.
6. Hire a Real Estate Agent Experienced in Marketing and Selling House Flips
A big part of profiting from a fix and flip is getting it off the market as soon as possible after listing it, and the best way to do that is to have an experienced real estate agent on your team to market the property and attract the right pool of buyers. Unless you have a real estate license yourself and are experienced with selling homes in your market, you are much better off having a professional take care of this job for you.
Not only do agents have the skill and know-how to effectively market your property, they also tend to have contacts in the area who are crucial for generating some buzz and interest in your property. If you want to make sure your flip sells quickly, you absolutely need to have a real estate agent tackle this critical part for you.
The Bottom Line
When it comes to selling a fix and flip, timing is everything. Every day that goes by without a sale is more money leaking from your pockets. Keep the above tips in mind to help speed up the selling process and maximize the profits from your rehabbing project.