If you are buying real estate, you will want to be sure that you win. In the world of real estate, there are no prizes for coming second. For a long time, I didn't know how to secure the house of my dreams. Every time I found a house that I liked, I would be beaten by someone who made a better offer. Thankfully, all of this changed when I found a great real estate agency. They helped me to tailor my offers so I had the best possible chance of securing a property. Last week, I picked up the keys to my dream home.
Flipping property is an easy way to invest in the lucrative real estate industry. Typically, you purchase property and sell it for a higher price. This article details how you can flip a property for a profit.
Always Consult With Your Real Estate Agent
Your real estate agent will evaluate the property and give insights that will significantly influence your purchasing decision. For example, they could appraise the property and compare it against similar properties on sale to establish whether the asking price is within the market rates. Besides, the agent will check if the property could have features that could make it a hard sell. For example, many buyers are not comfortable with a property that has easements. A balcony facing the neighbour's property could also make it challenging to sell the property. On the other hand, defects such as sinking foundations, illegal roofing and weak pillars might be expensive to repair.
Negotiate Aggressively
Below are a few ways to negotiate the price of the property:
- Inform the seller that their asking price is higher than your budget. You love the property but will consider other homes listed for less. It is a sure way to show the seller that you are a serious buyer.
- Check the property defects and inform the buyer that you will spend significant funds to repair the property.
- When dealing with a stubborn seller, pit them against other sellers on the market.
- If the seller does not bow down to your requests, go silent. If they contact you, they may have gone desperate.
Do Not Shy Off From Improvements
Well-thought return on investment improvements will significantly increase the property's value. The key to any improvement project is ensuring that it resonates with your prospective clients and makes the property stand out. For instance, rather than building a standard pool, consider getting an infinity pool instead. Large living spaces, smart technologies, and energy-efficiency features will increase the value of the property.
Know When To Sell
A shrewd property flipper will hold on to the property and sell when the time is right. The property does not have to stay idle. Consider short-term leases as a way to make passive income on the property. Ideally, you should sell the property when there is high demand and low supply. Besides, you could use exclusive listings as a way to make the property seem valuable. When selling the house, tap into the seller's psychology and emotions. Show them how the property fits into their daily lifestyle and why they should not consider other properties.
When flipping property, consult with your real estate agent, negotiate aggressively, do not shy away from improvements and know when to sell the property.