If you really want to know how to sell an investment property, you may want to contact a real estate agent for this portion of the process, even if you have avoided using one before now. This is because they will know best how to go about getting potential buyers into your home and how to negotiate a deal with a buyer quickly. One of the first things your agent will do is get your property listed. Having your home included in local market listings may be all you need, but it also never hurts to advertise online in other places and to use your social network.
How to Sell an Investment Property With ‘Staging’
Staging your home means filling it with furniture so that it looks and feels like a complete home. Staged homes sell up to 50% faster, but there’s clearly an additional expense. As a beginner, you may be able to sell your home quickly without going through this extra step. Every extra cost will impact how much money you make after the flip. If you’re having a hard time selling the home or even decide to stage it from the very beginning, there are a few things you should try to keep in mind:
- Use neutral, bright colors that appeal to a broad range of people.
- Do not include personal belongings, pictures, or other items (this could prohibit the potential buyer from being able to see themselves living there).
- Smells are very important! The home should smell clean at the very least. If you choose to add other fragrances, make sure they are light and not overpowering (many real estate agents also bake cookies or bread in the kitchen to make it smell inviting).
- Do not over-clutter the rooms. Keep them spacious.
- Use lighting to your advantage, especially sunlight. Proper lighting can really open up a room.
- Turn off anything that might be noisy or distracting (such as T.V.s). If you really want to add ambience, consider playing inoffensive music at a low level.
Tip: You can rent furniture for staging a home from staging companies. A good real estate agent should be able to help you arrange this.
How to Sell an Investment Property With an Open House
A good way to sell your home quickly is to hold an Open House. Advertise online as well as with signs throughout the neighborhood. During the open house, potential buyers will have the opportunity to walk through the home and ask you questions. Be prepared to answer their questions in an informative way, but refrain but detailing all of the improvements you have made. If there are still minor issues, do what you can to detract attention from these items. Lastly, if a particular problem is mentioned or remarked upon often, consider trying to have this repaired before you show the home to new buyers. As an alternative, you may have to settle for a lower asking price based in the final negotiations.
SUPER TIP: Remember that you are trying to make a profit. Don’t expect an unreasonable offer that’s above what other homes in the area are selling for. On the other hand, don’t accept an offer that cuts out the majority of your profit solely because it is the first (or only) offer you’ve gotten. Be willing to lower your price, after all, it will save you in holding costs, but don’t sell the home short because you’re afraid it isn’t going to sell. It may be that you simply need to refine your marketing strategy.
As a last and final note, remember to keep every receipt and report your profits to the IRS. It’s an unfortunate additional hassle, but not one you want to take any risks with.
Check out our First Time Home Buyer Guide for more information about the particulars of buying a home.
You can also check out our section on Home Buying Advice and Terms.
Finally, make sure you read this page on Common Home Flipping Mistakes.