Wednesday, June 13, 2012

Selling Your Flip In Todays Market

It's a tight market to rehab and resell property. Most investors at this point in time are buying and holding. It is more critical than ever that those that are involved with flipping property purchase extremely low and leave enough room for plenty of profit so you can lower your price to a point where you are at today's golden rule of approximately 15% below the ARV, After Repair Value.

It is the goal of a flipper to turn their property in the shortest amount of time and if you are selling 15% below it's fixed up market value in most cases you should be able to unload it within 3 months. From the worst to the he nicest house on the block for 15% below the ARV is your objective.

In selling your rehab your largest obstacles are as follows.

(Information from a report published by Integra Realty Resources from a survey of non-homeowners from 25-50 in 11 large markets.)

85% of potential homeowners say that market conditions are favorable to buying a home but unemployment and job instability make many of them unable to do so.

21% are not planning on buying because of an uncertain economic outlook.

24% are afraid of making a bad investment. Prove to  your potential buyers that they will have equity from the day they move in to overcome this.

31% will not be buying a property due to not having down payment money.

So you know the largest obstacles to home-ownership from this study. Develop a strategy to overcome these obstacles and sell your property. 


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