So you purchased a house, rehabbed it and now are ready to sell it. After all, this is why you bought the property in the first place, so you could fix it and then flip it for a nice profit. To ensure that this happens, here are four tips to follow when it is time to sell.
Thoroughly Inspect the Home One Last Time
The key to making a profit fixing and flipping real estate is to do it quickly. Otherwise you can get stuck with loan payments, utility payments and taxes that eat into your bottom-line. But haste in getting the property to market can cost money, too.
Before you put the home up for sale, do one last thorough walk-through to make sure that the property is 100% ready. Do this whether you did all the repair and renovation work yourself or hired a contractor to do it.
Check for clogged drains, leaking faucets and running toilets. Make sure that all the appliances work correctly. Double check the furnace and air conditioning. Open and close all the doors to ensure that they fit properly. Look for paint drops, sloppy touch up work or other details that a buyer might notice. When you find a problem, fix it.
Stage the Home
According to a 2013 survey by the Real Estate Staging Association, staged properties sell much more quickly than homes with empty rooms. This is because buyers have difficulty seeing themselves in a vacant home. Staging lets you show a house in its best possible light.
Most fix and flippers are on a budget. Luckily, staging does not have to cost a lot. Look for furniture deals on craigslist.com or at the local thrift store. If you are dealing in higher-end homes, then you might need to invest in some nicer pieces of furniture. After a property sells, just move the furniture to the next property.
Concentrate on staging the living room, bathrooms, kitchen/dining area and bedrooms since these are the areas where people spend the most time. Use nice bedding on the bed. Hang soft, fluffy towels and put up a shower curtain in the bath. Set the dining table. Make sure the entire house is clean, including the windows. Open the blinds or curtains to let in plenty of natural light. All of this helps transform a house into a home.
Do Not Forget the Outside
Curb appeal is important. It creates a buyer's first impression and might be the difference between someone wanting to see the inside of the house or just driving away. So fertilize, water and mow the lawn. Trim overgrown bushes. Paint the front door. Sweep the front porch regularly. Plant some flowers to add a little color.
Price the Home to Sell
Last but not least, price the home to sell. Of course you have to price it so that you make a profit, but you also need to price it so that buyers feel that they are getting a great deal. You can do this one of two ways.
The first way is to go above and beyond to make the home beautiful and then offer it at a price comparable with other homes in the area. The second way is to bring the house up to the level of other properties in the neighborhood and then offer it at a price below the average price of these other homes. Both methods work well because they make your property stand out and convince buyers that they are getting good value for their money.
When done right, buying, rehabbing and selling properties is a profitable endeavor. If you are ready for your first fix and flip or are a seasoned pro and need financing, then contact us. We provide fast, asset-based funding to residential property investors and look forward to working with you.
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