There are some properties that seem to defy the market highs and lows, and are quickly snapped up in any market. Why? Because it’s a property that lots of buyers want – simple as that. And for any professional renovator, that’s your ultimate goal when you’re buying a property to renovate and sell.
For anyone looking to make money from buying and renovating property, you need to follow a strategic plan - from the moment you decide to buy a property and begin your research, to the day that property is sold. Here’s a quick crash course in what to do – and what to avoid.
1. PREPARE AHEAD OF TIME TO AVOID BUYER OBJECTIONS
“Buyer objection” is a phrase you want to know well and avoid coming in contact with. It refers to something that a potential buyer doesn’t like about a property. Sometimes these are problems that can be fixed and others you won't be able to do a thing about. For example, you can fix a dark room with interior lighting. But there’s really nothing you can do if the property is on a noisy main road. (If you are considering buying a home with the intention to flip it, don’t buy a property that has a clear major buyer objection that can’t be fixed. You may have found it at a cheap price, but the truth is, your buyers will also be expecting a bargain when you resell and your fancy renovation will have been a waste.)
2. RENOVATE WITH MARKET APPEAL IN MIND
You're likely not going to win any fabulous design awards with your renovation project. So, keep it simple if you can. Be sure to choose a color palate that is modern, timeless and flexible. Use simple fixtures and fittings that look classy but don’t cost an arm and a leg. Generally, go for an overall look that has appeal for a broad spectrum of buyers. You want your buyers to be able to imagine themselves living in your property and creating a neutral setting lets the new owner add their own personality with ease.
3. ENGAGE A GOOD AGENT
A good agent will get you the highest possible price within a reasonable time frame. Choose one with excellent local property knowledge, a proven local track record, good negotiating skills and a database of genuine buyers. Ask if you can speak with the owners of the last three properties the agent sold. If the agent is not forthcoming with these details, alarm bells should ring. And never sign an agent’s contract for any longer than 45 days. This gives you an out, sooner rather than later, if they fail to measure up.
4. SALE YOUR TIME CAREFULLY
There are always going to be good and bad times of the year for you to list your property. Spring tends to be popular, but that can also mean the market is suddenly flooded with properties, leaving buyers to pick and choose. Fewer properties are available in winter, giving buyers less choice, so you may want to capitalize on that.
5. MARKET PRICING
You need to know and accept what your property is worth, not just what you’d like it to be worth. Usually, if a home isn't selling during the first listing period, it means the home is priced too high. Others that sell quickly may have been priced too low. Pricing your home correctly is critical, so really make sure you have a detailed conversation with your listing agent to plan your pricing strategy; including whether or not you want to go with an auction or private sale. As well, don't just take the agents word for it, do your own research so you know what similar properties to yours are selling for.
6. BE EXCLUSIVE
Listing your property with several agents won't increase your chances of finding more buyers. Listing exclusively creates loyalty, trust and ability for an agent to get the best price for you, rather than multiple agents trying to sell quickly at a lower price.
Before every open for inspection, take care of the details yourself. Do not leave this to the agent. Turn on all lights, open blinds and windows, light scented candles, place flowers around the place, flick on the funky tunes, sweep leaves off pathways, etc. You want your property looking A1 on inspection day.
8. BE EASY
Accelerate the process by having a building and pest inspection report prepared ahead of time from quality companies, with copies available at the open for inspection. Be open to all reasonable requests from your potential buyers. If you’re getting a price you’re happy with, why sweat the small stuff? Just go for the win-win.
These are just a few of the ways to make sure you are getting the best price possible for your renovated or remodeled home and property. The contractors at Unique Home Building are here to support you in the process. Please get in touch and let us know how we can help!