Now for the best benefit of flipping a house...selling.
No doubt, one of the most exciting parts of house flipping is selling. You have worked so hard and the sale is the sum total of the multiple steps you have taken. You raised some money having learned how to flip houses with no money, you bought the property, you repaired it and rehabbed it and now you're ready to sell it.
Way back when you were first starting out in assessing the house flip, you determined the ARV and with the house done, you are ready to list it with a real estate broker. It is a super exciting time in your life for sure. All those many months of hard work are finally coming to fruition and you are looking forward to leveraging your success to maybe quit your job, start your own business or go along to your next house flip.
I've talked about ARV or after repair value multiple times. Simply stated, the ARV is the price you hope to get when you sell. ARV or after repair value is the price you hope to get when you sell your house flip.
Think about it...if you don't know what you can sell a house for, it doesn't matter what you buy it for. If you can get houses really cheap, it doesn't mean it will make you money.
So ARV from six months prior is an important number to keep in mind for sure. But the real number as to what the "after repair value" is now. This all important number, however influenced by ARV, is the real number that you can sell for today.
After she does the market analysis, your broker tells you that you can sell your flip for $200,000. She carefully performed a market analysis and using compilations of other sold properties known as comps. Today, six months after the start of the house flip project, you have a very good feeling about getting top dollar when you sell. Now you need a buyer to make it all happen.
So because the broker tells you the price should be $200,000, do you go out and list the house for $200,000? Absolutely no way.
It doesn't matter if its your first flip or if you've been doing it for thirty years, always listen to your house flip advisors. You must ask the opinion of your real estate broker...she knows the market better than you. No one knows the market better than she does.
Ideally, the real estate broker may be the same broker that you worked with early on when finding your first house to flip. If you agreed ahead of time to sell the house with the same broker you bought from, you need to keep your word.
Make sure you keep your word. House flipping success hinges on forging relationships with people who know, like and trust you. It proves to the real estate broker that you are a credible and honest person, which will come back to you in the end. If you did promise them the listing when you are looking to sell, then make sure you stay honest and keep your word.
Be honest and keep your reputation intact. Word travels fast in the local house flipping world, so keep your word and your reputation in check.
Now is the time for your real estate broker to do the current competitive market analysis. Like most house flippers, you've been keeping an eye on the market so you probably have a good idea as to what the new price might be...but the truth is in the numbers.
Two things could happen: the market analysis could come in on a higher number than your original ARV or it could go lower. If the price is below ARV, that's when the 70% Rule will really assist you.
So when you do sell your house flip, make sure you put safeguards in place to make sure you lock in your profits. This can be done by buying your house 70% below your final ARV. This number also includes the rehab costs as well. If you do this properly, you will make money flipping houses. Using these tips will help you to sell and profit when flipping houses.
No doubt, one of the most exciting parts of house flipping is selling. You have worked so hard and the sale is the sum total of the multiple steps you have taken. You raised some money having learned how to flip houses with no money, you bought the property, you repaired it and rehabbed it and now you're ready to sell it.
Way back when you were first starting out in assessing the house flip, you determined the ARV and with the house done, you are ready to list it with a real estate broker. It is a super exciting time in your life for sure. All those many months of hard work are finally coming to fruition and you are looking forward to leveraging your success to maybe quit your job, start your own business or go along to your next house flip.
I've talked about ARV or after repair value multiple times. Simply stated, the ARV is the price you hope to get when you sell. ARV or after repair value is the price you hope to get when you sell your house flip.
Think about it...if you don't know what you can sell a house for, it doesn't matter what you buy it for. If you can get houses really cheap, it doesn't mean it will make you money.
So ARV from six months prior is an important number to keep in mind for sure. But the real number as to what the "after repair value" is now. This all important number, however influenced by ARV, is the real number that you can sell for today.
After she does the market analysis, your broker tells you that you can sell your flip for $200,000. She carefully performed a market analysis and using compilations of other sold properties known as comps. Today, six months after the start of the house flip project, you have a very good feeling about getting top dollar when you sell. Now you need a buyer to make it all happen.
So because the broker tells you the price should be $200,000, do you go out and list the house for $200,000? Absolutely no way.
It doesn't matter if its your first flip or if you've been doing it for thirty years, always listen to your house flip advisors. You must ask the opinion of your real estate broker...she knows the market better than you. No one knows the market better than she does.
Ideally, the real estate broker may be the same broker that you worked with early on when finding your first house to flip. If you agreed ahead of time to sell the house with the same broker you bought from, you need to keep your word.
Make sure you keep your word. House flipping success hinges on forging relationships with people who know, like and trust you. It proves to the real estate broker that you are a credible and honest person, which will come back to you in the end. If you did promise them the listing when you are looking to sell, then make sure you stay honest and keep your word.
Be honest and keep your reputation intact. Word travels fast in the local house flipping world, so keep your word and your reputation in check.
Now is the time for your real estate broker to do the current competitive market analysis. Like most house flippers, you've been keeping an eye on the market so you probably have a good idea as to what the new price might be...but the truth is in the numbers.
Two things could happen: the market analysis could come in on a higher number than your original ARV or it could go lower. If the price is below ARV, that's when the 70% Rule will really assist you.
So when you do sell your house flip, make sure you put safeguards in place to make sure you lock in your profits. This can be done by buying your house 70% below your final ARV. This number also includes the rehab costs as well. If you do this properly, you will make money flipping houses. Using these tips will help you to sell and profit when flipping houses.
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