If done right, the fix and flip strategy can be a great way to earn income in real estate relatively fast. In a short amount of time, you can upgrade a distressed property and sell it at a substantial profit. However, this strategy comes with a lot of risks. A house flip can easily cost you thousands of dollars if you don’t know how to sell your house fast. The longer your fix and flip property remains unsold, the more money you lose due to increasing holding costs and the longer you suffer negative cash flow.
If you want a higher return on investment, you must begin by understanding that there’s more to selling investment property than placing a “For Sale” sign in the front yard and waiting for potential buyers to contact you. In this post, we cover the top strategies that will help you sell your house fast.
Related: Home Selling Process: 8 Steps You Can’t Skip
7 Tips to Sell Your Fix and Flip Property Quickly
1. Do the Right Renovations
Many new house flippers invest a lot of money on renovations but still struggle to sell their property. If you want your fix and flip property to sell quickly, you must be careful about the renovations you perform.
The renovations you make will, of course, depend on the investment property you’ve purchased. But there are a few best practices to follow. Focus on small repairs and cosmetic renovations that will be appealing to potential buyers and increase the value of the house in their eyes. To do so effectively, you should first identify your target buyers and research what they want. Are your target buyers young couples looking for inexpensive starter houses or are they wealthy individuals who want modern and high-end fixtures and amenities? Whatever your target audience is, make sure that your rehab work appeals to a wide audience and isn’t too specific.
However, be careful not to over-improve your fix and flip property. Even if your rehabbed house is the best in the neighborhood, it will be difficult to sell if it is priced significantly higher than its real estate comps. Therefore, try to stick to the rehab budget you set upfront.
Related: Property Renovation 101: What Improvements to Make for High ROI
2. Price It Competitively
Overpricing is arguably the number one reason why fix and flip homes won’t sell fast. If you want to sell your fix and flip quickly, you have to price it right. If your listing price is too high, you’ll have a hard time getting it off the market. On the other hand, setting a price that is too low may leave a lot of money on the table.
To price your fix and flip property effectively, you should actually do it even before you buy the property. Before you purchase your investment property, estimate the after repair value, and ensure that you will still be able to make a good return when your rehabbed house is priced at market value. Generally, you shouldn’t buy a property at a price of more than 70% of the ARV, minus the expected repair costs.
Remember, for you to entice buyers and sell fast, your listing price should be at or below the average selling price of other similar properties in the neighborhood that have recently sold (comps). The fastest and easiest way to find real estate comps for properties in the US housing market is to use Mashvisor’s investment property calculator.
So long as you stick to your rehab budget, you should be able to earn your desired profit at market price. However, as you run the numbers for potential investment properties, it’s important that you give yourself some cushion since rehab costs will sometimes be more than budgeted for.
3. Work with an Experienced Real Estate Agent
Working with an experienced realtor is key to selling your fix and flip property quickly and getting a great deal, especially if you are still new to this investment strategy. Find a real estate agent who specializes in selling fix and flip real estate and has a good understanding of the local housing market. They will guide you through the whole selling process, including getting the house ready to sell, pricing the house correctly, and marketing. Without a good real estate agent, selling a rehabbed house can be a complicated and stressful process.
Find a top-performing real estate agent in the city of your choice now.
4. Stage It Properly
After you have finished rehabbing your house, you should stage it before it is viewed. Well-staged fix and flip homes look more inviting to potential buyers and will typically spend less time on the market and yield a higher return than those that aren’t staged.
If a house is empty, its functionality and best features are likely to be downplayed and its flaws exposed. It will typically look and feel smaller, colder, and starker than it actually is. However, home staging allows potential property buyers to visualize themselves living in the house and improves the perceived value of the fix and flip investment property.
When staging your fix and flip property, be sure to consider how the financial costs will impact the final sale price. Keep it simple and inexpensive, and focus on the main rooms (living room, kitchen, and master bedroom). Moreover, your home staging should appeal to the widest range of your target buyers.
If you can’t do it yourself, consider hiring a professional home stager. With modern technology, you can also stage your property digitally.
5. Improve Curb Appeal
The exterior of your fix and flip property is also important since it creates the first impression. To enhance curb appeal and make the house sell faster, consider clearing the yard, repainting the front door, planting flowers in the flower beds, etc.
Related: Selling a Property? 7 Easy Ways to Add Curb Appeal to Your Listing
6. Sell at the Right Time
To sell your property quickly, timing is also important. Generally, the best time of the year to sell a house is in spring. At this time, the improving weather can help show the property at its best. More people are also getting out for house hunting at this time. Properties may also sell fast in the summer months.
Apart from seasonal trends, to determine the ideal time to sell, you should consider the conditions of the local housing market. For instance, find out if it’s a buyer’s market or a seller’s market.
This doesn’t mean that you should wait to sell your investment property. Once the renovations are done, it’s best to put it on the market. However, when planning out your fix and flip real estate investment strategy, you can buy the property and time the renovations (as best as you can) in order to get the property ready for the hotter selling seasons.
7. Market the Property
Even if you have the best investment property for sale on the market, you won’t get buyers if nobody knows about it. Therefore, when flipping real estate, you should learn how to market it. There are many ways to market your fix and flip property so that it reaches more potential buyers. First, advertise your property by listing it in multiple places. A good place to start is to list it for free in the Mashvisor Property Marketplace. Here, you’ll find real estate investors looking for investment properties for sale. Be sure to use professional photos and have a detailed description.
Ready to sell your home? List it for free in the Mashvisor Property Marketplace.
Here are a few other real estate marketing methods that will help you generate more leads quickly:
- Tell your friends, family, and colleagues about the property you are selling so that they spread the word.
- Post pictures on social media platforms like Facebook, Instagram, Twitter, etc.
- Invest in paid advertising. For instance, you can run targeted ads on Facebook.
- Create a referral system for past clients.
- Start an email marketing campaign.
- Host an open house.
- Network with local real estate professionals and investors. Attend local open houses, real estate meetings, and investor clubs.
Related: Real Estate Ads: Use These Words to Sell Your Property Fast
The Bottom Line
When flipping houses, always remember that the faster you sell, the more profit you can generate. If you want to sell your fix and flip property fast and avoid losing money, keep these strategies in mind.