Welcome back to MOR Financial’s REI Blog where we cover all things Real Estate Investing. So, we’ve talked a lot about the buying of the house, the rehabbing of the house… but how do you make sure that you can sell the house in a short time frame?
Part of selling a house is making sure that things are all done in the right way so that the property is in position to be sold quickly and efficiently. If the house doesn’t sell quickly, then all of your profits will go toward holding costs and then you will have done all that work and spent all of your efforts with nothing in your bank account to show for it. So, let’s go over 5 steps that you can take to make sure that you sell your house quickly and thus, turn a profit.
First, you need to determine if the house should be staged, or at least partially staged. Staging a house is very much a “cost benefit analysis” type of thing. At certain price-points, it doesn’t make sense to stage your house. In others, your house will not sell if you don’t stage it. If staging your house will make it sell faster and your holding costs would be greater than the cost of staging the house, then by all means, stage it! There are some very high priced staging companies out there. Do yourself a favor and shop around. Just like anything else, get at least 3 quotes, look at the work being done and choose the best fit for the house. It isn’t necessarily the cheapest one, nor is it the most expensive one. It’s the RIGHT one you’re looking for.
Secondly, you need to know the market. If you want to sell the house, you need to get people into the house. Part of that is your price point. If you price it AT market value, you may be cutting out some of the people who would otherwise come and view your house. If you price it just under market value, then you will get more people into the house, allowing people to get into a bidding war. This way, people may end up paying more for the house than they originally planned. The other thing is that if you price it too high, it may sit on the market and cost you a lot in holding costs. At that point you would need to sell it for a higher price just to turn a profit, but the market isn’t sustaining the price. That puts you in a position of needing to sell it for a loss just to keep the loss from becoming any larger. You’re dealing from a position of weakness, and that’s something you can’t afford to do in this business. Unless you are experienced, pricing is something that you need to talk to your Agent about. Don’t get greedy and overprice your house. Price it at the point where it will sell quickly and you make the profit that you are aiming for.
Third, focus on curb appeal. You only get one chance to make a first impression. This is especially important when you have a house on the market. The majority of the renovations are on the inside, but no one will buy a house that has no curb appeal. When you do the landscaping, spend the extra money and buy the plants that are already grown instead of the ones that are immature. Pressure wash the driveways, if necessary, to show that you care about the appearance of the house. Make sure that the sidewalks are swept, the lawn is in good shape and everything has that “buy me!” feel to it.
Fourth, make sure that your house smells and looks like a home. The new owner wants to smell fresh paint, but you can also tap into their sense of smell in other, more subliminal ways. If the house smells like a home, your buyers will feel more comfortable in the house and more “at home.” I happen to like candles for this (my favorite is “waffles and syrup” for the kitchen). While you are making the house smell nice, pay particular attention to all of the clutter that accumulates during open houses. Keep the house free and clear of clutter and trash. If you pay attention to the details when you sell the house, it shows that you paid attention to the details when you rehabbed the house.
Fifth, advertise in as many ways as possible. You never know where the lead that sells the house will come from. You can create a website just for the house for very little cost. You can dive into the world of Social Media and take full advantage of the platforms provided by Twitter, Facebook, Instagram, YouTube and Craig’s List. Call every Agent you know and make them aware of it. Not only will you be helping out part of your network (they get commission, after all), but they also have a network they can spread it to. Of course, your Agent will put it on the MLS, LoopNet and all of the other “official” real estate sites, but don’t neglect the other, lesser-known sites. Most are free or inexpensive and can give you exposure that you need to sell your house and move on to the next one.
Most importantly, remember to have fun. The hard work is done and now you are just waiting for the hard work to pay off. Don’t be greedy…accept the offer that is in front of you that hits your profit margins instead of thinking “a better offer will come in soon.”
If anyone has more questions or wants more one-on-one coaching, don’t hesitate to contact me. This is a passion for me and I truly enjoy sharing what I know with others. Thanks for coming by and getting a bit of the education. Until then, remember that you, too, have that inner warrior that it takes to achieve greatness and success. Feel free to drop me a line at Coaching[at] BaileProperties.com.
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