So you’ve done all the heavy lifting when it comes to locating, buying and repairing that diamond in the rough. It was a long, hard road of demolition, redesign and rebuilding — whoever said that house flipping was easy?
But as important as all that construction work was, an equally crucial step in the process is pricing the house to sell. After all, we’ve said it before, and we’ll say it again. When it comes to real estate investing, time is money. Luckily, there are lots of resources out there to make the task a little less onerous.
Check Out Some Comps
One of the first steps to make is to check out the prices of similar houses in the same neighborhood that sold over the past few months. The comparable homes or “comps” will give you a pretty good idea of where the sweet spot is for pricing your property. Pay attention to the details such as how long the house was on the market before it sold and whether there were any price drops. In choosing good comps, you’ll want to make sure the houses offer similar amenities such as square footage, number of bedrooms, and finishes. So be smart about it—compare apples with apples. A house that sits on an acre lot and has 4 BRs won’t make a great comparable for a 3 BR house on a half-acre lot.
Automate the Process With AVMs
Technology is a wonderful thing. You can put it to work for you when determining a ballpark price for your flip. Many websites offer free Automated Valuation Models or AVMs in which you type in your address and the model uses a nifty algorithm to compare comps in your area and then spit out a suggested price. Of course, AVMs are just a starting point. For more in-depth analysis of the market, it always pays to consult a realtor.
Turn To The Professionals
You wouldn’t treat a toothache yourself, would you? That’s what dentists are for! The same applies to selling your home. Realtors know the ins and outs of the market and can pull comps that are right in line with your property. After a thorough walk-through, they can also give you useful feedback on how to make your house more desirable to the perfect home buyer.
To find out how Navigator Private Capital can help position your next project for success, reach out to us at 443.603.0193 or via email at info@gonavcap.com.