Losing money on a real estate investment isn’t fun. It especially isn’t fun when you put a lot of sweat equity into completely gutting and renovating a property in order to flip and sell. As an investor, you need to understand that there’s more to successful flipping than finding the property and performing the necessary renovations. You also have to be capable of relisting and selling the property down the road.
House flipping isn’t for the faint of heart. You must be patient, meticulous, and, at times, emotionless. The process of finding the right home, rehabbing it, and then selling it for a profit will take a lot out of you. It’s not as simple as a 30-minute episode on HGTV.
It’s also not uncommon for people to place offers on dozens of properties before finally getting one accepted. When someone tells you that they’ve had a handful of offers rejected, you know they’re doing it the right way. They’re being thorough and patient – not settling for an overpriced home or letting their emotions get the best of them.
While it may seem elementary, let’s review the three basic stages of the house flipping process to provide an overview of what needs to be done:
• Find.
It may not seem like it, but finding the property is the single most important stage of the process. This is where you make your money. If you overpay on the front end, you’ll find it challenging to recover a profit on the back end. Experienced house flipper and real estate investor Brandon Turner has an excellent in-depth guide to help you with this.
• Renovate.
The second stage is the messiest. This is where you put in the work (or hire the work) and actually begin to see aesthetic improvement. While finding the right property may be the most important step, the most mistakes are made during the renovation phase. First time flippers should work with someone more experienced to ensure renovations and improvements go as smoothly as possible.
• Sell.
Finally, the third stage involves selling the property. This is where your hard work and determination pays off. If you’ve found the right home and properly allocated your renovation budget, then selling will be much easier. However, don’t assume it’s as simple as putting a “For Sale” sign in the front yard.
As you can see, selling hinges on finding the right property and making the correct renovations. If you nail the first two aspects, selling becomes that much easier.
You never want to leave money on the table. Flipping a house takes hard work and you deserve every last dollar you can get at the closing table. Keep the following sales-related tips in mind to ensure your flipping experience is as profitable as possible.
1. Set a Fair Price
Everyone wants to make money – especially when so much manual labor and meticulous searching goes into the process of finding and rehabbing a property – but you can’t overprice your flip and expect it to sell. Quite frankly, the end buyer doesn’t care how much work you put into it. They only care about what they’re getting and won’t overpay simply because you worked hard on the rehab.
2. Educate Buyers
With that being said, do educate buyers about what you did to the property. This is an excellent chance to market the property and let them know what a fantastic deal they’re getting. You won’t be able to list every single improvement you made, but pick out two or three of the biggest ones and leverage them as selling points. For example, you may choose to tell buyers about the brand new HVAC unit, refinished hardwood floors, and renovated master bathroom. Don’t talk about how awful the property was before. Instead, focus on how beautiful it is now.
3. Use Professional Pictures
There’s a massive difference between using amateur photos and professional images in a real estate listing. We’ve discussed tips and tricks for taking more attractive listing photos in the past, but here’s what you really need to know: Professional photography is ideal. Professional real estate photographers have the right equipment, understand flattering angles, and are worth every penny they charge.
4. Market Via Social Media
You’ll definitely want to place your listing on Zillow and other popular online listing sites, but don’t stop there. Social media is your best friend when it comes to selling a property. You don’t even need a professional business page. Just post about the property on your personal page and encourage a couple of close friends or relatives in the area to do the same. You’ll be surprised by how many leads you can capture this way.
5. Spruce Up the Exterior
First impressions are everything when selling a home. As soon as an interested buyer pulls up to the house, they’re going to have a positive or negative reaction. This reaction will be built on the neighborhood, the property’s landscaping, the condition of the driveway, the condition of the home’s roof and siding, and the appeal of the front door. Hopefully you accounted for some exterior maintenance in the rehab process, but if not, now’s the time to pay attention to curb appeal.
6. Use the Services of an Agent
As every first-time house flipper quickly realizes, the process of buying, renovating, and flipping isn’t a one-man job. It takes an entire team of people in order to succeed. When it comes time to sell, don’t attempt to do a for-sale-by-owner transaction. There’s just too much at stake. An experienced agent can help you maximize your profits and protect your investment.
Property owners are saving a lot of money when they partner with Green Residential instead of the average real estate agent. When we work with home sellers, we charge a flat fee that ultimately saves you thousands of dollars in agency commissions. We’re the leading flat fee real estate agency in the Houston area and take much of the financial burden of selling off your shoulders. For additional information regarding how we can help you sell your home, please contact us today!
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