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I’m sure you can picture this situation. You’ve purchased a dilapidated Colorado house, poured your heart and soul into fixing it up, and listed it with your realtor. Now you’re nervously waiting to see if your house will sell, how much it will sell for, what will come back with the appraisal and inspection, and whether your buyer will actually qualify for a mortgage and close. This quick article walks you through some simple tips to maximize your chances of making sure all these things go your way to make sure you sell your flip for top dollar.
By quality rehab, we don’t mean doing the absolute highest quality finishes on every project. What we do mean is matching the work you do to the Colorado neighborhood, and then going a little above and beyond. You want your house to stand out among the crowd, but not so much that you way overspend above what the neighborhood can justify.
Research other flips in the area and write down all of the finishes they included. What level of counter tops did they install? Did they replace the cabinets or paint them? Did they do basic or high end landscaping? You get the idea. Once you have this list, do a budget of what these items will cost and whether they fit your budget. Then go back and see what little extras can you include to make your house shine. Don’t go crazy and install granite counter tops in your $120,000 rental, but maybe upgrade the fixtures or install a more durable flooring.
One other tip is to make sure the things you don’t see are clean and serviceable. For example there is a bunch of junk in the attic, throw it out. True your buyers may not see it the first time through, but I guarantee the inspector will take pictures, and that’s not a conversation you want to be having a week before closing.
Setting the price for a flip can definitely be a challenge. You want to get top dollar for your efforts, but don’t want to price yourself out of the market. While I wish I could provide an exact science on how to price your flip, it’s a bit more of an art. What I can tell you is how to tell if your flip is priced well. The main indicator I look at when determining how to adjust the price of a property I’ve listed on the MLS is how many showings we get and what the feedback they are giving. If we’re not getting at least one or two showings a week, I immediately drop the price. Also make sure to read all the comments provided by the potential buyers that see the house. If they are all mentioning it’s priced to high, drop the price.
Probably nothing else has more impact on how much you sell your flip for than how it is marketed. This can and well be an entire post in the future, but here’s a list of the basic marketing items you need to get right.
It’s amazing how far giving a few little extras can go to help you sell your flip for top dollar. You never know what is going to speak to your buyer and what situation they might be in. For instance if money is tight, providing a refrigerator or paying for moving costs might be just what they need to move. Other might be more worried about security, so paying for a one-year warranty might be a much bigger value to them and the cost to you. The point is, try and go the extra mile for your buyers and it will make you stand out amount the crowd.
This might not help you with your first or second rehab, but once you’ve sold a few homes, use those properties to market your company as experts in thee business. This goes back to marketing, but the more pictures and videos you take along the way, and then share on your social media, the more people see you as being professional Colorado real estate investors. If you can tie in the story of your buyers and how you not only helped them, but went above and beyond to provide a quality house and an exceptional experience, this will set you above all the other rehabbers who just fix up a property and hope for the best. Start building your reputation on your first flip and it will pay dividends as you continue to grow your business.
I could have provided pages and pages of tips and advice on every one of these topics, but odds are you would have only read the first one or two and not gained the benefit of having a general knowledge about each. If you just take away and implement a few ideas about how to sell your flip for top dollar, I guarantee you’ll make more money without a lot more effort. If you’d like to learn more about how we maximize our profits on our flips or if you’d like to be notified of deeply discounted properties we have for sale, feel free to reach out to us at email@example.com. Best of luck with your Colorado real estate investing!
P.S. If you’d like to hear us explain a few more details about selling your flip for top dollar, you can check us out on YouTube. Sell Your Colorado Flip for Top Dollar