Yes, we all know selling a rehab home tends to be a bit hectic and frustrating starting from the point wherein you are just scouting for the perfect house up until buying it, renovating it, and selling it to another prospective buyer who may hopefully buy it at a higher price that you have valued it on. ‘
Here at Home Hunter Academy of Nicholas Haley, we will always be welcome in helping you on how to make it big in the real estate world by giving you helpful tips on how to properly look for the perfect house to buy, how to reconstruct or renovate it, and most especially how to gain a large amount of profit from it. So before you sell your house, let us remind you what are the important Dos and Don’ts when it comes to selling your rehab home towards the prospective buyers:
- Do give it a fresh coat of neutral paint
Since this is a new house, you may think that you can just slather on any paint, heck, you might even consider just buying the cheapest paint you can get your hands on. However, to guarantee that you will be able to sell your rehab home, even when it comes to details for the interior such as the color of the paint becomes an important aspect. How? Painting a bright orange for the living room might turn off most prospective buyers, but if you will paint the whole house with neutral colors, you will have more chances of selling it as neutral colors give this illusion of a blank canvas that these prospective buyers themselves can imagine customizing it according to their own preference.
- Don’t leave any personal belongings
Leaving any traces of personal belongings from the previous owners may give the impression to the prospective buyers that you could possibly be not ready enough to let go of the house yet. As a real estate investor, you want to make them imagine that this house can be their own starting from the first step they take upon entering the house.
- Do fix the broken doorknobs and broken windows
These may be tiny things for you, however, even the tiniest detail such as a faulty doorknob or a cracked window may turn off your prospective buyers. Fixing doorknobs and windows will not cost you much, invest a little money in it.
- Do hold an open house
You will need to hold an open house for prospective buyers. In this way, you will be able to show them around the house and introduce to them the wonderful utilities and features of the room that they just might like. In this way as well, if a prospective buyer may not find the house fit for their needs and wants, he or she might know a family member, friend or colleague who might take it instead, which means you will be saving a lot of time doing some extra advertising.
In certain trades of products and services, there are times when the demand for it has its own seasonal peaks. For example, depending on where its location is in the world, certain countries will have its seasonal peaks with the influx of tourists from all over the world. Let us say for Germany, the case would usually be during the summer and most especially during the 2nd week of September up to the 2nd week of October which is the time for Oktoberfest where people indulge in the country’s famous pints of beer. Even for tropical countries in Central America such as the Caribbean and Hawaii, the seasonal peak for it is during the Summer season where you can witness people of all races, getting that perfect sun-kissed skin under the tropical sun.
Just as in vacations and holidays, there are certain months wherein influx of tenants would be going around the state or country, looking for the perfect apartment for them to stay. The reasons vary somehow, it could be they are just new in the town or state so they need a place to stay, a family which needs a bigger home for their kids or they could be just ordinary college students studying in a university and they need a great apartment which is conveniently near to their university. During these peaks seasons is when you should make yourself totally available to accommodate the best tenants possible, so when does this happen?
During Winter season
Winter season is usually the time for hibernation, well at least metaphorically, but it is the time when the demand for new apartments by prospective tenants are low. The turnover is low as well since it will be a hassle for prospective tenants to move from one place to a new one during a time when everything is just cold, usually making the activity or the process of moving out, relatively slower.
During Summer season
There is no doubt that the demand for apartments from prospective tenants usually happens during summer wherein most people are available to be able to free up their time to move to a new place. Also, the consistent weather makes it possible for one to move anytime without any fear of a snowstorm and such unlike during winter season. It is also because during this time as well, recent high school graduates which are now college freshmen will be looking for apartments near their university. Recent college graduates would also be looking for a new place to stay wherein they can start new career opportunities. With these demands, there is no doubt that the turnover rate is significantly higher compared to winter season.
With these in mind, you as a real estate investor, should prepare yourself anytime of the year to accommodate prospective tenants. However, please make sure that you scan your tenants carefully in certain ways such as checking their credit history to make sure you would not be robbed off of inconsistent rental fee in the future from an irresponsible tenant.
When it comes to real estate investment, you will have to be ready to deal with a lot of unforeseen circumstances and as well as self-preparation to be sufficiently ready as real estate is not as simple as selling in retail stores, it involves a lot of smart decisions, a large sum of money, a lot of time available, skills to be used, a lot of patience as well and you must be knowledgeable when it comes to self-advertising and marketing.
When you lack these number of factors, it may be more challenging for you to deal with these circumstances. So how to know if you’re not yet ready to flip houses yet? These factors might help you realize just that:
- Short on budget
It is a hard truth to face but a truth anyway, you cannot just choose to flip houses if you do not have a large sum of money in your bank account or a large income which can help you secure a great loan from the banks. However, your first expense will always be the property acquisition cost and that means you will have to deal with paying interest, which also means that every dollar you cash out for the interest is another dollar to earn from your sale just so you can break even. It is important to always search for possible financing options rather than settling for what is known and comfortable.
Not only that, the renovation cost will also be a struggle as you will be needed to have the budget to be able to provide resources and the financial capacity to reconstruct whatever needs to be fixed in your property. You also need a budget for the payroll of the inspector, contractor and its employees, and as well as advertising and marketing budget after the reconstruction is done.
- Lack of time
It cannot be denied that venturing into the real estate is time to consume at its finest. It may take a lot of months before you will be able to find the property perfect for you and another set of time for you to be able to secure the deal and enlist the property under your name. Then you will have to spend a couple of months renovating the property for it to be visually pleasing for prospective buyers. However, it does not stop there, you will have to spend time with inspectors to ensure that your property coincides with the building codes and if not, another time will be spent just to get it right this time.
- Lack of patience
It is important that as a real estate investor, you do not just settle for any property just because you are exhausted from looking for the right house to flip or you do not know any other contractor other than what your colleague recommended to you, and you cannot just help but ask your contractor to rush the work without giving them the right resources to do so.
It is evident that selling houses for flipping will never be the easiest task, certain real estate investors may make it seem so but with projects like that, the real estate investor is similar to a swan: graceful-looking on the outside as it glides through the water and yet beneath it is a pair of hard working and struggling palmates, paddling and paddling just to keep on moving forward.
Here at Home Hunter University by Nicholas Haley, we will be helping you in giving you tips on how to successfully sell your flipped house to guarantee profit and make it all worth it.
- Make sure you have renovated it beautifully
Let us be real, no one wants to buy a flipped house and yet it still looks worn down and not worthy of pride or bragging for your in-laws or your parents. Your prospective buyers will want to own a house they can imagine creating memories in and raising their family in for generations to come. The fact in itself that it is a flipped house which was just renovated, can possibly turn off some of your prospective buyers so you have to please them visually: make sure the reconstruction is great, fresh paint in every part of the room, new flooring, replaced windows and door knobs, well-kept garden and lawn as well as a flawless curb–get all of these rights and you will surely keep on attracting prospective buyers.
- Enlist it in business listings
Take advantage of the internet and the convenience it offers by enlisting your property in business listings wherein it will be easier for real estate agents, fellow real estate investors and as well as prospective buyers to discover your property. However, be accurate with your house description, only enumerate the factors that your house actually has. No more, no less. Do not exaggerate about a wide front lawn when it is actually narrow in real life, your prospective buyers may lose trust in you.
- Produce a home tour video
Producing a home tour video opens a lot of doors: you can reach a wider audience when you upload it on the internet, it allows people who are on their smartphones and computers to be able to visually experience being guided or toured around your property without having to take a step out of their house or spend 30 minutes to an hour of travel just to see your property in person. This form of advertising your property also allows your prospective buyers who live in other states to save time and money traveling all the way to your property but at the same time, encouraging them to consider your house.
- Hold an open house for potential buyers
Holding an open house is creates a buzz around your property. For sure, you’re invited prospective buyers will also call on out to their family, friends, and colleagues who are also on the lookout for a house to buy and you want to make this as your goal. Be sure to invite those who you think can afford to buy your property and have an excellent credit score.
Finding the right house to flip is not as easy as what some may say, experts would even be apprehensive when it comes to flipping houses as it is the type of real estate investment that requires a lot of time, effort, and of course, money to splurge with all the repairs, reconstructions, and unprecedented circumstances to overcome while in the process of flipping it.
However, here at Home Hunter University by Nicholas Haley, we can give you key components or important factors to consider when you are looking for the right house to flip and how to determine if it is the perfect one. As a real estate investor, you must be wise about your decisions and where you put your money in, therefore, we are helping you avoid making any mistake you might just regret later.
Here are the factors to consider when it comes to flipping houses:
A mansion located inside a trailer park is obviously not fit for it, nor is a 2-storey building in the middle of nowhere such as a desert for it has to be in the middle of the town or near other establishments as well. Location may be one thing but it is also everything. Here are 3 different subfactors on why location is important:
You have to ensure that the neighborhood where the house belongs to is a decent one wherein the future clients will be able to imagine living there for decades. Do not just settle for a good house in a bad neighborhood, chances are you will have a hard time selling it in the future.
- Accessible to malls, schools, hospitals, and police stations
When your house property belongs in a great location where malls, schools, hospitals, police stations, and the downtown is accessible, then you can sell the house for a much higher price. That is why you should also consider location as one of the most important key factors.
- In a community with low crime rate
If a neighborhood is known to have a crime rate, you might have a hard time selling it to your future clients as it might scare them away. Also, even if you ask a real estate appraiser, the value of your house property would decrease and this is what you must avoid the most. If you find a great house to flip in a bad neighborhood, leave it be and go find another one
- Get a professional to inspect the property
A house inspector is hired for the very services such as these ones. An inspector would be able to determine the current state of property you want him to inspect and he will be able to give you a full assessment of the condition of the house yet you have to take note that he will not be able to predict the future condition, efficiency and life expectancy of the house but with the information he will give you, you will be able to deliberate whether the house is worth it or not.
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