In this episode, I address the issue of selling your fix-and-flip property. Specifically, what should you do if you have trouble selling a property that you have just renovated?
From time to time, you may have a fix-and-flip property that takes longer to sell than you anticipated. There are a couple of reasons why this may happen:
- Your ARV was too high to start with.
- The market changed during the time that you were renovating the property.
- Something is inherently wrong with the property (bad location, bad layout, poor rehab).
- Winter: severe weather can be a factor when trying to sell your house.
- If you’re trying to sell the house without a realtor, perhaps you’re not making yourself available enough, or potential buyers are finding it difficult to get information about the house.
- Maybe there’s an issue with the neighbor (noisy dog?).
But if you were conservative enough with your numbers in the beginning, there should be room to lower your asking price. In my experience, pretty much any house will sell if the price is right. Most often I find houses that aren’t selling are simply priced too high.
Make sure that you are getting good after-repair value estimates from your realtor when you purchase.