Setting The Right Price For Your Fix and Flip Home The First Time Arou
Let’s face it. The real estate market is facing a growing inventory crisis with a dampening effect on home sales. For fix and flip investors, pricing a property correctly is essential to selling it as fast as possible, no matter the market conditions. As a real estate investor, you also need to choose the right price to assure good profits and cover all of the renovation expenses.
If you overprice the property, the home will be less appealing to potential buyers and spend costly months on the market. Not an ideal outcome! Here is how to set the right price for your fix and flip property the first time around:
Avoid Property Pricing Mistakes
It’s natural for a property on the market to have interest wane after about three weeks of viewings. This is what makes setting the right price for the property so crucial. While you can always lower the price later, it might be too late and you’ll lose out on the first round of enthusiastic buyers and offers. It’s better to price a property too low than too high to start. Pricing a property too low is less detrimental as homes below market value will receive more competitive offers, pushing up the price.
When narrowing down pricing, ask yourself, what price do you think will represent the property’s real value to buyers, but still covers your expenses? Even if the local buyer pool is booming, overvaluing a property is a near guarantee that it will sit on the market and rack up costs.
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