In real estate, every moment counts – especially in dealing with flipped properties. The quicker you secure a buyer, the better. Until your property is sold, you’ll continue to incur costs such as interest payments, insurance, and taxes. The first 24 hours after listing are crucial for attracting interest, and the longer a property remains unsold, the harder it becomes to sell. Buyers and agents may sense a lack of demand as time passes, potentially leading to lower offers. The way you introduce your property to the market can significantly impact whether it sells quickly or lingers.
Your rehab work isn’t over until you get a signed contract and close. But what is the most effective strategy for selling a rehab property?
Set the Price Right
Pricing is everything. It’s crucial to set aside any personal attachments or ego and rely on your real estate agent’s objective advice. Sales prices are typically based on comparable properties, and while your renovation work may be excellent, if there are few comparable sales in the area, it may be challenging to justify the price you’re hoping for. You must balance the potential benefits of selling now, even if it means accepting a slightly lower price, against the possibility of waiting longer for a higher offer. Some sellers even get their property appraised before listing to avoid any surprises later.
Ideally, you would have multiple offers at your asking price, but this isn’t always the case. If you price your property too high, you may drive away potential buyers who have strict budgets. This could lead to a lack of demand, forcing you to eventually lower the price after weeks on the market, which not only costs you time but also increases your holding costs. To sell a rehab property quickly, it’s essential to price it correctly from the start.
Use Modern Marketing Techniques
A real estate agent’s primary job is to generate interest in your property. In the past, this often meant conducting physical showings. Today, however, many buyers do their initial property searches online. Statistics show that 51% of buyers start their property search online, 34% rely on real estate agents, and the remaining 15% use other methods like word of mouth or signage. If you want to sell a rehab property fast, you must embrace modern marketing strategies.
Generating a buzz around your property is crucial. You and your real estate agent should collaborate before listing to plan out how, when, and where the property will be marketed. While increasing marketing efforts might raise commissions, it’s a worthwhile investment. A slight increase in commission can result in thousands more in your pocket. Without proper marketing, it will be difficult to attract a buyer quickly.
Don’t Skip Staging
After spending significant amounts on renovating a property, the last thing you may want to hear is that you should invest more money in staging. However, now isn’t the time to be frugal. Even the most beautifully renovated property can feel incomplete without furniture. Staging helps potential buyers visualize how the space can be used, which can be the final push needed to sell the property.
Staging can be expensive, depending on the size and specific requirements, but consider the potential return. Spending $2,000 on staging might seem steep, but if it leads to a full-price offer within the first 24 hours, most sellers would consider it money well spent. While staging isn’t necessary for every property or market, it can be a game-changer for the right property. If you’re aiming to sell a rehab property quickly, staging could be the key to sparking buyer interest.
Pay Attention to Details
Before listing your property, make sure everything is in perfect condition. To achieve the best price, you need to inspect every aspect of the property. Start with the exterior—something as simple as adding a few plants near the entrance can make a significant impact. Curb appeal is the first impression a buyer gets, and it’s essential not to overlook the outside when you’ve invested heavily in the interior.
Next, consider factors like lighting, temperature, and even the smell of the property. First impressions are critical, especially right after the property hits the market. A lingering unpleasant odor could be what a potential buyer remembers most. Ensure that every detail is perfect before listing. While you’re selling a renovated property, it’s important that buyers don’t immediately think of it as a recent rehab. Buyers prefer properties that feel move-in ready, so addressing every small detail can help you sell faster.
Choose the Right Offer
Receiving an offer is just the beginning; you need to ensure it’s a good one that aligns with the investment you’ve made. When an offer comes in, review it carefully with your real estate agent. Beyond the price, consider other factors such as the closing date, financing contingencies, and inspection requests. It’s important to remember that the offer’s price is just one part of the equation—other terms can be equally important.
A cash offer with a quick 10-day close is very different from an offer with FHA financing and a 45-day close. The discount you might accept should be based on your net profit and the current market conditions, but every offer must be weighed carefully. Accepting an offer that falls through can set back your sale by weeks or even months. If you’re focused on selling a rehab property quickly, take the time to choose an offer that will close smoothly.
By following these tips, you can increase your chances of selling your rehab property quickly and ensuring a successful investment.