As any rehab investor knows quicks sales are essential for success. It allows you to maximize profits on the current deal and accelerate how quickly you can find the next one. As great as quick rehab turnovers are not every investor knows how to achieve them. It is not enough to hurry through a project and throw your property on the market. If you don’t do the right work and list at the right price your property will quickly become stale and have a tough time finding buyers. A quick sale is nice but you need to take the necessary steps to achieve it. Here are four ways to help sell your rehab quickly.
- Use Real Numbers. The first step in selling your rehab actually starts even before you take ownership of the property. You need to know all of the numbers associated with your deal. It is important that you have a clear idea of what your after repair value (ARV) will be. With this number in mind you can make decisions regarding your offer price and repair estimates. If you are unrealistic with your ARV everything else in the transaction will be off. You will find yourself quickly going over budget which will lead you to do work you never anticipated. To compensate for the overage you will list your property at a price that is well above market comparable sales. While looking at new deals is exciting you always need to use realistic, or even conservative, numbers throughout the process. The purchase price and your projected after repair value have a direct correlation in how quickly the property sells.
- Use A Professional. On the surface selling your home looks like something anyone can do. You may think that you can certainly perform the tasks of a real estate agent while saving on the commission. The reality is that selling a property is a lot more difficult and much more work than you may anticipate. Not only do you have to make yourself available for every showing but you need to worry about negotiation. Like most everything else in real estate if you want something done right you should use a professional. A professional real estate agent will help you see things about the market than you may have not previously considered. They will promote your property on the MLS to reach the largest amount of people in your area. They have existing relationships with fellow real estate agents and may have buyers who are looking in your market. Whatever you pay for commission you will earn back with a quick sale that is usually at the highest possible price. Getting your rehab sold quickly is too important to handle on your own. Always utilize the services of a professional real estate agent.
- Price Right. Buyers don’t care about all of the wonderful work you may have done. When you bought the property it may have looked like it was ready to fall over but that is not important to buyers. This isn’t to say that buyers don’t want quality work but all they care about is the finished product. How the property got there is not important to them. It is important to remember this when you price your rehab. You need to take personal emotions out of it and look solely at the market. Listen to your real estate agent and examine the current listings and recent transactions in the area. This is what buyers and their real estate agents will do. By trying to test the market and list for a price that is too high it can have a severe negative impact. Instead of getting your price your home will not even be looked at by many qualified buyers. They will gravitate towards properties, and sellers, who are more realistic with their price. After a few weeks your demand will be reduced to the point where you have to consider a price reduction. Once this happens buyers will sense desperation and come in with lowball offers. By pricing right from the outset you can let the quality of your work generate demand and sell your property quickly.
- Perfect Showings Every Time. Every open house and individual showing you have has to be perfect. Your real estate agent will handle talking to prospective buyers and generating interest but it is up to you to showcase the property. This means making sure your property is clean, well lit, freshly landscaped, temperature controlled and smelling great every showing. You never know where your buyer will come from. If you let your guard down for just one showing you could miss out on your next buyer. It is a good idea to ask someone unrelated to real estate to tour the property and give you honest feedback. They may suggest that the property seems too vacant and may need to be staged. They may notice something with the exterior of the property that is an eyesore and needs to be corrected. Any feedback you receive you should be flexible enough to listen to the market. Now is not the time to be stubborn and think your property is good enough just the way it is. The better the property looks for every showing the more likely it will be sold quickly.
Selling your rehab quickly often requires you to take a proactive approach. The better prepared you are before you take ownership, during the rehab and after you are finished with your work the quicker you can sell your property.
