Flipping a home in New Port Richey can be a great way to turn a profit, but it is never as easy as it appears on HGTV. We hope our tips and tricks will help you sell a fix and flip house fast!
Selling a fix and flip house involves several key steps and considerations. Here’s a general guide to help you through the process:
- Prepare the Property: Ensure that all renovations and repairs are completed to a high standard. Make sure the property is clean, staged, and ready for viewing.
- Price the Property Right: Determine a competitive price based on the local market conditions, the property’s features, and the cost of renovations. Overpricing can lead to the property sitting on the market for too long.
- Market the Property: Utilize various marketing channels to reach potential buyers, such as online listings, social media, real estate websites, and signage.
- Negotiate Offers: When you receive offers, negotiate the terms and price with potential buyers. Be prepared to counter offers or accept the best offer that meets your needs.
- Close the Sale: Work with a real estate attorney or title company to handle the closing process. Ensure all paperwork is completed correctly and all legal requirements are met.
- Watch Out for:
- Overestimating ARV (After Repair Value): Ensure your renovation costs are in line with the potential selling price of the property.
- Underestimating Renovation Costs: Factor in unexpected expenses and plan for contingencies in your budget.
- Market Conditions: Be aware of the local real estate market trends and adjust your selling strategy accordingly.
- Legal Issues: Ensure all necessary permits are obtained for renovations, and comply with all local laws and regulations regarding the sale of the property.
By carefully planning and executing each step, you can increase the chances of a successful sale of your fix and flip property.
They say a home’s value is based on location above all else. 60% of the home’s value comes from where it is located on the map. Home prices may vary drastically as you move from neighborhood to neighborhood.
A house that might be a great value in one part of town, may sell for considerably less just a few miles away. Make sure you have done your homework and have a good understanding of home prices in YOUR neighborhood.
You will also want to have a grasp on the demographics in the area. Who is buying? Families, seniors? What are they looking for, and what can they afford?
Don’t Over-Improve The Home
When making improvements to a home you plan on flipping, remember that less is more. There are no guarantees that you will recoup the costs spend to fix it up. Replace things that are not working or that appear very old, but leave it at that.
Do not sink money into a home adding excessive details and upgrades. If bathroom cabinets are old and ugly, replace it with a simple (and cost effective) pedestal sink.
Always keep in mind, that no matter how many upgrades you make, a home will not sell for $500k, when the neighboring homes are going for $150k.
Price Your Home Before Anything Else
Before you sign the papers to buy the home, have the number in your head of what you will sell it for. Be careful not to overinflate this number. You should be pricing low in order to get a buyer and sell the home fast.
Be realistic and stick to your numbers. Do not think that by making a $40k renovation to the basement, you will be able to add $40k to your asking price.
Review all your numbers before getting started, and keep in mind, repairs typically require more money than what you initially plan for, so give yourself some cushion.
Only Drop Once
When you initially price your home, give yourself enough room to drop the price once. Plan to make a significant drop of $5-$10k if the house isn’t receiving much attention at your original asking price.
You will only want to drop the price once. Dropping the price more often can make the house appear as if something is wrong with it, or that you are desperate to sell.
Before starting any real estate investment project, it is important to educate yourself and work with professionals you can trust.