6 Tips On Selling Fix And Flip Properties in 2023

In Fix and Flip real estate investments , for an investor to make a return on his investment, they need to be able to resell the property at a profit. The scariest outcome of a fix and flip project is to finish an expensive refurbishment only to find that there aren’t any interested buyers. While the investor still holds a technically valuable asset, their plan for a quick return on investment does not come to fruition. To minimize the risk of an unrealized sale, real estate investors must conduct a thorough market analysis to understand the demand for such properties in the area. Additionally, investors should study trends to predict whether the market in 2023 would still be attractive for prospective buyers at the end of the refurbishment timeline.

Regardless of the amount of preplanning and research done, it can only serve to aid investors in making more informed decisions and reducing risk. Still, it can never remove the risk entirely once the acquisition has been made. However, here are some tips that can help improve the chances of a successful, profitable sale.

1. Focus on targeted repairs and renovations

Ensuring any repairs or refurbishment done to the property is focused on appealing to the target buyer audience and will increase property value. Essential upgrades such as structural repairs, electrical and plumbing systems, and refurbishing kitchens and bathrooms can help attract potential buyers. The scope of the rehab should be decided before the property purchase and soon after the property assessment is completed. Finalizing the scope of work and, ideally, the contractor to hire, will allow you to have a clear budget and timeline for repairs that do not exceed your predicted profit margin.

2. Staging the property

After rehab work, you should focus on making the property as presentable and appealing to buyers as possible. Making the best use of lighting by opening shutters and blinds, adding furniture and décor that blends in with the property style, and fixing small details like squeaky hinges can go a long way toward enticing prospective buyers.

Hiring a professional photographer to help capture appealing images for listings can also help generate interest for your property from online or published sources.

3. Set the right price

Unsurprisingly, price plays a crucial role in deciding whether a sale happens and even more so in uncertain times for the industry.. The ideal pricing should be attractive enough to entice buyers while ensuring your target profit is met. Ideally, you would have researched beforehand to understand the pricing of comparable properties in that area to help set a baseline. When setting the price, always factor in the costs of rehab, financing, and holdings to ensure accurate profitability.

4. Aggressive marketing

You will never sell your property if people don’t know about it. 2023 is the year of the aggressive marketing Try posting on relevant social media groups and listing the property on popular real estate websites to help you reach a broad audience. Hiring a professional real estate agent to handle your property and holding open houses are also tactics that could work. Think about how you found this property in the first place and try to use the same platforms or methods to showcase your property for sale.

5. Offer financing options

Sometimes a buyer may be highly motivated to make a purchase, but your expected price may be just outside their reach. To help make your property more accessible to a broader audience, consider working with a local lender to provide financing options to buyers.

6. Offer peripheral benefits

Consider offering additional incentives if the buyer is still hesitant about the price. Apart from discounts,  offering benefits like a home warranty may provide peace of mind to buyers worried about a newly renovated property. Another benefit might be closing cost assistance to ease the transaction. Always factor any additional offerings into your sale price beforehand so you know you will maintain your expected margin.

Conclusion

While selling your property for your expected price is never guaranteed, these tips can give you a leg up when flipping your property once it’s ready for sale. Remember, fix and flip property investing can be a lucrative strategy for real estate investors as long as proper due diligence is done before investment and a systematic, multi-pronged approach is taken to selling the property.  

Should this article have inspired you to consider investing in a property to fix and flip, our team at RE Investor News can help you secure funds for your investment. Our qualified team is ready to discuss your requirements and advise you on the way forward,  so contact us now.

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