The worst thing an investor can encounter when trying to sell their investment property is to have it sit stagnate on the market. I would always suggest trying to have the property sold before you even finish with the renovations and start marketing your property before you even start renovations. The following are my top three ways to sell your fixer-upper quickly:
- Market the Property from Day 1: This means the minute you get the keys, advertise the property. Before the renovations even start, post the property everywhere. Online ads have become a new way for buyers to search out properties. Advertise it as a “build to suit” or “custom design your new home,” as these are attention-getting headlines. Let the buyers chose their style, color, layout, etc. I would advise that if you attract buyers using this method, have the contract written up and extend for the time period it will take to complete the upgrades. Also have them put down at least 3% of the purchase price as non-refundable earnest money, this way they will be committed to the deal.
- Market the Property to the Neighborhood: This is a simple technique I’ve found that helps sell a property quickly. Make some flyers about the property, and then on a weekend, walk the neighborhood (for your safety, don’t walk alone, take a friend with you). Knock on every door and let the neighbors know you are an investor and you are fixing up the ugly house and you want their help to sell it. Tell them that if they refer a buyer to your deal, then you will give them a $250.00 finder’s fee (the fee can be whatever you want). The majority of homes sold are by neighbors telling their family and friends about a house in their neighborhood.
- Run the Numbers Correctly: One of the biggest reasons homes don’t sell is because they are overpriced. Make sure you run accurate after repair values, and set a tight rehab budget. Get good comparables from your real estate agents. Be sure to not over improve a home, as this will not always get you more value and it will be difficult to sell at a higher price.
The methods I mentioned in this article have helped many investors sell their properties quickly. These tips can be applied to any area. Don’t be afraid to think outside the box when it comes to marketing your property for sale. Get creative and have some fun with it.