When flipping houses, investors have to move fast every step of the way. From researching a property, to renovating it, and then to place it back on the market for sale again. The maximum amount of time that smart real estate investors who flip properties spend is usually no more than 6 months – and that’s being generous. Most properties are found, fixed, and sold within 90 days thanks to savvy flippers knowing exactly how and where to find buyers.
Every day that a renovated and remodeled home spends sitting on the market vacant and without a buyer is money that is being drained from your potential earnings. The mortgage payments, the utilities, and the upkeep will be entirely your responsibility. This is why flippers often start to hunt around for buyers well before their properties have been renovated. In fact, it often begins before the “flipping” has even begun.
Study the Neighborhood
Prior to even purchasing a property, smart house flippers will study the neighborhood and assess how desirable a property will be by:
- Seeing how many homes are currently on the market and how long they’ve been there
- What condition the properties in the area are being kept in
- How much the neighboring homes have sold for over the past 30-90 days
Interested buyers have taken a significant amount of time learning all about the specific marketplace of a neighborhood. As a smart flipper, so should you.
Offer Money Saving Incentives
Everyone loves to save money, and offering monetary incentives that could shave thousands of dollars off of the purchase price can expedite a sale and move that house off of the market within days. For example, a flipper may choose to accept a bid that’s $10,000 less than the highest offer because the buyer’s agent promised and proved that the deal could be closed within 1 to 2 weeks.
Ease Their Concerns
Any buyer who has done his or her research on flipped homes knows that there are a lot of pertinent questions that come with purchasing such properties. They’ve been advised to check out your business and contact prior buyers who have purchased your properties. They’ve been told to be extra vigilant when looking for structural problems, when reviewing heating and air conditioning units, and to have separate professional check the roof of the home (in addition to having a home inspection).
These are all fair and common sense pieces of advice. You can alleviate these concerns by showing proof that you’ve already:
- Had the home inspector come in and give your home the seal of approval
- Obtained all necessary permits to perform the work on the home
- Had a separate roofing and heating/air conditioner professional come in and approve of those units
The more reassurance that you can give that you aren’t just trying to cut corners and make a quick buck, the better. When you prove that you have truly added value to this home and property through your hard work and determination, the more likely you’ll be to seal the sale.