How to Sell a Rehab Property FAST
November 22, 2022
In the world of real estate, time is money. With every rehab property, you work on it is essential that you find a buyer as quickly as possible. The interest payments, insurance, and taxes don’t stop until your property gets sold. The first 24 hours of any new listing is the best time to generate interest. The longer your property goes unsold the harder selling becomes. Buyers and their agents feel the lack of demand every day your house sits on the market and will adjust their offers accordingly. How you roll your property out can make all the difference in finding a buyer or waiting until the market comes to you.
Your rehab work isn’t over until you get a signed contract and close. But what is the most effective strategy for selling a rehab property? Here are five tips for home sellers to learn how to sell a rehab property fast so that their investment in the property doesn’t go down the drain.
How to Sell a Rehab Property Fast: 5 Simple Tips
Selling any property is a detailed ordeal, but a rehab property has its unique challenges as well. If you’re wondering how to sell a rehab property fast, you’re likely concerned that the property might be undesirable due to its demands. However, with the correct pricing and marketing, virtually any property can get snatched off the market.
Always Price Accordingly
You have probably heard this a hundred times but you can’t understate the importance of pricing right. You need to remove any personal attachment and ego you have with the property and let your real estate agent give their unbiased opinion. Regardless of the market, all sales are based in part on comparables. You may have done great work but if there are limited sales in the market, it may be more difficult to justify the value you are hoping to. You need to weigh the value in selling now, even at a slight discount, with waiting a few weeks to try to get maximum value. Many sellers that are trying to sell a rehab property fast will even get their home appraised ahead of time in order to justify value, that way there are no surprise price drops down the line.
In a perfect world, you would have multiple full-priced offers to choose from but this is not always the reality. You can try to shoot for the moon but you should understand the damage you will cause by listing too high. Buyers with strict budgets may see the price and immediately look elsewhere. Your demand may be limited and eventually, you could be forced to drop your price. All the while you will have wasted weeks without gaining any traction and accumulated additional holding costs in the process. When learning how to sell a rehab property fast, start with pricing right from the get-go.
Embrace Modern Marketing
The primary role of a real estate agent is to generate as much interest in the property as possible. In the past, the best way of doing this was by physically showing the property. With the advances in technology, buyers can find almost anything they want online before a physical viewing.
Statistics show that when buyers browse their options in properties, the internet accounts for 51% of traffic, a real estate agent 34%, and the remaining 15% is through word of mouth, signage, etc. If you’re looking to sell a rehab property fast, you’ll need to embrace modern marketing strategies.
The most important job of a real estate agent today is generating a marketing buzz. With the right demand, everything else becomes easier. You and your real estate agent need to sit down before listing to discuss exactly how, when, and where they will market the property. On your end, you may need to acknowledge that increased marketing may cause an increase in commissions but if you look at the big picture it is worth it. 1% of the sales price can lead to thousands extra in your pocket. Without an interest in your property, it will be difficult to quickly find a buyer.
Don’t Neglect Staging
After spending tens of thousands of dollars over the course of restoring a rehab property, the last thing you want to hear about is spending more money on the likes of staging. As difficult as it may be, now is not the time to close your wallet and pinch pennies. Even the most perfect rehab property can still feel naked without furniture. You are relying on the instincts and imagination of your buyers to get the real feel of the property. To help give your property the final push it needs you should consider staging.
There is no getting around the fact that depending on the size and your demands that staging can be pricey. But, just like with agreeing to the extra commission, you need to consider the bottom line. Is it worth it to you to spend $2000 on staging if it helps attract a full-price offer in the first 24 hours? Almost every rehabber would answer with a resounding “yes”. Staging doesn’t work for every property in every market but for the right one, it can be just the thing that helps find your buyer. If you’re wondering how to sell a rehab property fast, don’t hold back in considering how staging will transform the space and spark buyer interest.
DETAILS MATTER! Before listing, you need to make sure that everything with the property is perfect. If you want to get a desirable price you need to look at every nook and cranny of the rehab property. Start by taking inventory of the exterior of the property. A couple of plants by the front door may influence a buyer on the way in. Curb appeal is the first impression a potential buyer gets when exploring properties, and it can be counterproductive to pour investments into the interior of the home without also considering the outside.
From there, make mention of the lighting, temperature, and even the smell of the house. First impressions matter especially when the property is just listed. A lingering bad odor could be what someone remembers after they leave the property. You should dot every “I” and cross every “t” until you are completely satisfied with the product. While you may be selling a rehabbed property, it’s smart to ensure the buyer doesn’t immediately recognize the recent rehab. Buyers don’t like having to dump money into a home they just bought, so pay attention to all those little details that might sell it even faster.
Pick the Right Offer
Getting an offer is not the ultimate goal, you want to make sure it’s a desirable one based on the money you’ve put into the rehab.. When any offer comes in you and your real estate agent need to give it a thorough examination. In addition to the price, look at the closing date, financing contingency, and what they want to do with the inspection. It’s important to remember that price is just one term of the offer – the other terms of the offer should also strongly be considered when making a decision.
An offer with FHA financing and a 45-day close are not the same as a cash offer prepared to close in 10 days. How much of a discount should be based on your net profit and the current market but every offer must be considered. Choosing an offer that drags their feet and ultimately ends up not closing will set your property back weeks, if not months. If you’re concerned about how to sell a rehab property fast, it’s worth taking some extra time for a price that will close smoothly.